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The introduction of advanced internal combustion engine mechanisms and powertrains may improve the fuel conversion efficiency of an engine and thus reduce the amount of energy needed to power the vehicle. The paper presents a novel design of a variable compression ratio advanced spark ignition engine that also permits an expansion ratio that may differ from the induction stroke therefore generating an Atkinson cycle effect. The stroke ratio and the ratio of maximum to minimum in-cylinder volumes may change with load and speed to provide the best fuel conversion efficiency. The variable ratio of maximum to minimum in-cylinder volumes also improves the full load power output of the engine. Results of vehicle driving cycle simulations of a light-duty gasoline vehicle with the advanced engine show dramatic improvements of fuel economy.