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Rising fuel prices and global concern over climate change have resulted in the need to deliver vehicles with improved fuel efficiency. The aim is to achieve this without compromising vehicle performance, durability or cost. Passenger car manufacturers worldwide are looking at various ways to optimize fuel economy performance. One option is for a vehicle OEM to re-design engine componentry in an effort to reduce engine friction and thereby reduce tailpipe emissions. There is also an increased focus on the crankcase lubricant as a potential tool to improve engine efficiency. This has led to a close collaborative working model between equipment manufacturers and engine oil marketers to create state of the art fluids capable of delivering higher fuel economy benefits without compromising engine durability. This paper describes a structured approach to the design of an advanced engine oil for a diesel passenger car.