Global fuel economy and CO2 reduction mandates are driving the need for a substantial increase in vehicle fuel efficiency over the next several years, with improvements coming from many sources. This paper describes a vehicle demonstration program to improve fuel economy by implementing a systems approach to reduce friction and parasitic losses. The work concentrated on nearer term technologies that can be quickly transferred to production vehicle programs. Major technologies demonstrated on the vehicle included gasoline direct injection (GDi) with cooled EGR, advanced valvetrain, rollerization of both crankshaft and camshaft, and stop-start engine operation.The work described in this paper comprises Phase I of a two phase program funded by DOE contract DE-EE0003258. It includes a hardware overview and a description of the system development activities. Results focus on vehicle fuel economy benefits compared to a production baseline vehicle.