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Due to new federal regulations and higher environmental awareness, the market demands for high fuel economy and low exhaust emission engines are increasing. At the same time customer demands for engine performance, NVH and reliability are also increasing. It is a challenge for engineers to design an engine to meet all requirements with less development time. Currently, the new engine development time has been trimmed in order to introduce more products to the market. Utilizing CAE technology and processes in an engine development cycle can enable engineers to satisfy all requirements in a timely and cost-effectively way. This paper describes a new Powertrain Virtual Analysis Process which has been successfully implemented into Chrysler PTCP (Powertrain Creation Process) and effectively utilized to shorten and improve the product development process. This new virtual analysis process guides the product development from concept through the production validation phases.