The automotive industry is presently experiencing a rapid escalation in the use of electronic components for the control of vehicle functions. The service environment in the dealerships have, at the same time, been relatively unchanged with little emphasis upon developing expertise in servicing these electronic systems. This circumstance has brought about increased customer dissatisfaction due to the incidence of alleged over-repair work and the number of “repeat repairs.” As electronic components become more numerous and also as the functions being controlled increase in complexity, it is imperative that diagnostics be developed to support these sophisticated electronic systems at product introduction. Successful implementation and deployment of such diagnostics can best be accomplished if product design and diagnostic development occur concurrently. This study presents some of the issues that the current service environment faces and describes our strategy for developing and implementing diagnostics for future electronic systems.