This paper introduces a project for the development of an F-125 machine using 3D PLM systems including 3D CAD, CAM, CAE, PDM, and DMU systems. Here, the F-125 machine is a formula racing car equipped with a 125cc motorcycle engine. A development process and computer-integrated environment was established using 3D PLM systems on the conceptual basis of concurrent and virtual engineering. A DMU model for a full vehicle was built using CATIA V.5 and used to check interference between parts and to simulate assembly process. This DMU-based approach enables to find and fix manufacturing problems in the early design stage. All development activities have been done by the graduate and undergraduate students of the automotive engineering department of Kookmin University. Through the project, the students could acquire knowledge about car development process and 3D PLM systems in automotive industry.