The P’UP has been on the markets worldwide since 1972, both in Japan and overseas, including for the U.S., in which case, with model designation as the Chevrolet LUV. In 1980, for the first time since its market introduction, it was fully remodelled with detail improvements reflected thereon in every aspect. This new model continues to be on the U.S. market as the Chevrolet LUV as it has been, but, beginning from spring of 1981, the similar model has been introduced to the market by the American Isuzu Motors Inc. (AIM) as the Isuzu P’UP.Taking this opportunity, a diesel version has been added to its model lineup. The diesel engine mounted on this version features its 20 to 30% better fuel efficiency over its gasoline counterpart.In the first half of this paper, the engineering concepts of its full remodelling and their onvehicle reflection will be introduced. In the last half, we will introduce the specifications and performance of a diesel version which has been developed with its engineering concepts of the attainment of any easy handling and performance well comparable to a gasoline version.