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The emphasis automotive manufacturers have placed on lightweight, low-cost components has resulted in a number of custom-engineered materials which have outstanding properties. High temperature polymers and composites, low cost nickel-based alloys, and surface coatings are areas in which material development has lead to parts with improved performance at lower cost. This paper explores the feasibility of employing laser surface processing to provide better performance for two key engine applications, cylinder bores and valve seats. The Laser Induced Surface Improvement (LISI, patent-pending) technique developed at The University of Tennessee Space Institute, is a surface modification technique which can provide high quality surface layers. Example laboratory tests on processed aluminum substrates indicate that hardness and wear-resistance can be substantially improved.