This GOALI/IUCP (Industry-University Collaboration Project) is a joint research program between the New Venture Gear Inc. (Troy, MI). It develops modeling, analysis and design techniques for the reduction of torsional vibration and the elimination of gear rattles in manual transmissions of passenger cars and light trucks. Gear rattle is produced by the impacting of gear teeth through their unloaded mesh backlash as a response to engine torque fluctuations. The complexity of torsional vibrations and various nonlinearities (e.g., backlash, friction hysteresis, and multi-stage stiffness) of manual transmission present many challenges for the analysis of torsional vibration characteristics and gear rattle behavior. This GOALI/IUCP investigation focuses on a comprehensive understanding of the torsional vibration and gear rattle characteristics. Through the development of a new and powerful numerical analysis technique, finite elements in the time domain (FET) an efficient modeling and simulation capability is attained for performance assessments and parametric studies of the strongly nonlinear system. This modeling capability is utilized to develop computer tools to be used by the design engineers to discover; feasible conventional improvements and to optimize powertrain configuration. Furthermore, the computer analysis tools are integrated within Chrysler's vehicle powertrain technologies such as the automated clutch with controlled slip. This project provides a unique opportunity to combine the strong expertise in basic research available in academic settings and the Chrysler's extensive experimentation and product development. With Chrysler's support of research funds and the participation of a 8-member team, this collaboration further strengthens an established partnership with expanded industry-university interactions through mutual visits, student summer internships, and collaborative experiments, allowing the university researchers to sharpen their research focus while tackling a serious real-world application problem.