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The paper presents results of engine development and research activities demonstrating the potential of technology currently being developed to meet forthcoming emission regulations for heavy-duty diesel engines in Europe and USA. Development strategies demonstrated in the paper concentrate primarily on the reduction of NOx and PM exhaust emissions while maintaining engine fuel economy and durability. Furthermore, decisive aspects of engine competitiveness are considered, such as minimum necessary complexity of the technical solution in order to minimize production costs, and low engine noise characteristics.