This article presents the new system of virtual powertrain development introduced at Porsche AG that incorporates all phases of the development process, as well as all components and simulation disciplines. The system enables a powertrain in its entirety to be designed and tested virtually. Most activities can be planned and budgeted at the beginning of the project, and interactions that occur are systematically taken into consideration. The hardware-driven development process used until now is completely transmitted to the digital world. Powertrain development is divided into thirteen digital powertrain systems (DPSs), which contain different components and disciplines and are developed throughout the entire product development process. For each DPS, tasks, links, time schedules, reporting scopes, and responsibilities are precisely defined. Finally, a digital vehicle prototype is built from several DPSs. The results are aggregated in several stages, ensuring that core statements are consistently incorporated at all assessment levels, from the individual component to the overall vehicle. Furthermore, this article discusses in detail DPSs that are especially important for battery electric vehicles. For most of the examples, the powertrain of the Porsche Taycan is used. The Driving Performance and Load Spectra DPS provide the necessary design parameters for a new drive system. In the Electric Motor DPS, active parts of the electric motor are designed and all structural components are verified. In the Transmission DPS, all gear set parts are designed and verified. In the Cooling, Lubrication and Actuation DPS, all temperatures are calculated and the lubrication circuit is designed. The Powertrain Dynamics DPS provides information on powertrain vibrations. The article closes with a look at future development trends. The aim is not just to design and verify components but also to completely virtualize function and software development. Therefore, this article presents a system for creating and using a virtual development environment and tracking the results.