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The paper briefly reviews the current and future needs for automotive electronic packaging technology and the related reliability issues. Reliability approaches based upon physics-of-failure are discussed, and an example is given to illustrate the importance of understanding the root cause of failure and the application of a state-of-the-art approach to life prediction of leadless solder joints under thermal cycling. An introduction is also given to the recent development of the CAIR (Computer Aided Interconnect Reliability) system developed at Ford for reliability prediction of solder interconnects in automotive electronic packaging. The system integrates a number of software modules using a user interface and allows for evaluation of critical design parameters within a short period of time. The system is intended to implement the “prevention mode” into the product design process to meet the increasing reliability demand and to reduce cost and cycle time.