In December the Z 360 received a facelift and a water-cooled engine, it too producing 36 hp at 9000 rpm. Only a month later, the 31 hp engine used in the lower spec variants (Standard, Deluxe, Automatic, Custom) also became water-cooled.
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In June the Life emerged as the successor to the Honda N III 360. It is fitted with a series of newly designed two-cylinder 356 cc SOHC, liquid-cooled four-stroke engines equipped with a balancer shaft. For strictly urban use, a lower-revving engine with a lower compression (8.0:1, as opposed to 8.8:1 for the higher powered version) is installed in the "Life Town". For this version, which is a no-cost option across the range, the engine output is dropped to a 21 PS at 6,500 rpm - as opposed to 8,000 rpm for the high-compression unit. It also has a three-speed transmission, meaning that top speed is limited to 90 km/h.
In July an all-new, three-speed, fully automatic transmission was made available.
In September a three-door commercial-use "Van" was added, with unique bodywork from the B-pillars back. Slightly taller than its sedan counterparts, like them the Life Van is also available with the full automatic transmission.
In October a private-use version of the Life Van (called "Wagon", chassis code WA) was added, priced midway between the two- and four-door sedans. This could also be equipped with the three-speed automatic. The Van can be told from a wagon by its tattletale luggage rails visible through the rear windows.