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This paper assesses the potential for car and light truck fuel economy improvements by 2010-15. We examine a range of refinements to body systems and powertrain, reflecting current best practice as well as emerging technologies such as advanced engine and transmission, lightweight materials, integrated starter-generators, and hybrid drive. Engine options are restricted to those already known to meet upcoming California emissions standards. Our approach is to apply a state-of-art vehicle system simulation model to assess vehicle fuel economy gains and performance levels. We select a set of baseline vehicles representing five major classes - Small and Standard Cars, Pickup Trucks, SUVs and Minivans - and analyze design changes likely to be commercially viable within the coming decade. Results vary by vehicle type.