The critical challenge of improving fuel efficiency of new vehicles must be met if the world's finite petroleum supply is to be conserved for future generations. Automotive engineers will require new, more efficient design techniques to successfully meet the challenge. This paper presents the approach used in the design of GM's new 1978 intermediates as an example of how improved efficiency can be achieved. Factors affecting fuel consumption are outlined along with program goal setting. Areas of emphasis including weight reduction, powertrain optimization, and road load horsepower reductions are discussed as well as explanations of new engineering tools used.