Abstract: An automotive CAE software based on automotive theory, finite element analysis and optimization design has been developed to resolve relevant engineering problems. Functions of simulation and key technical problems involved in the software system are described. Application of the system showed that automotive power performance, fuel consumption can be predicted and its sensitivity in parameters can be analyzed, constructional parameters for motor vehicle body and frame and matching of the power transmission system can be optimized. In this way, the period of production can be shortened, time of experimentation much reduced and quality of product improved.