This paper describes representative examples of Value Analysis-Value Engineering (VA/VE) work performed on the Mod II Automotive Stirling Engine (ASE). The VA/VE work was performed by several teams of engineers from Deere & Company and Mechanical Technology Incorporated (MTI), the designer/developer of the Mod II engine. Descriptions are given for changes to the design of representative engine component parts which were identified to reduce manufacturing cost, with minimum or no adverse effects on performance or durability in the engine. Also presented are the results of an estimate of manufacturing cost for the Mod II Stirling engine, based on a production rate of 15,000 engines per year. The estimate of manufacturing cast was prepared by specialists from several manufacturing divisions of Deere & Company. It was concluded that the engine can be manufactured at a cost of $4425, excluding the electronic control system. The paper includes a brief description of the Mod II engine design and current engine performance test data.