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The use of waste heat for automobile engine that applied Rankine cycle from the viewpoint of exergy (available energy) was researched. In order to recover heat to high quality energy, a heat-management engine whose exhaust port was replaced with an innovative evaporation device was developed. With this engine, high temperature and high pressure steam (400 degree C, 8MPa) could be generated from a large amount of the exhaust loss. In addition, high temperature water (189 degree C) was obtained from cooling loss. Consequently, the system that recovered more exergy from waste heat was established. To verify the system, the Rankine cycle system was installed in a hybrid vehicle and the automatic control system to change steam temperature and pressure according to the load variation was constructed. As the result of vehicle testing, thermal efficiency was increased from 28.9% to 32.7% (by 13.2% increase) at 100km/h constant vehicle speed.