In this paper, we proposed the automatic cutting mechanism of the perforation pipes in an automobile muffler. This cutting mechanism makes continuous work possible, because it performs the batch work via the sequential operation of loading, feeding, cutting, and discharging. The proposed cutting mechanism consists of the frame unit, escape unit, turning unit, feeding unit, vision system, clamping unit, spindle/cutting unit and cooling unit. And, these mechanisms have been modularized through mechanical, dynamical and structural optimized design using the SMO (SimDesigner Motion) analysis module. Also, the virtual prototype was carried out using the 3-D CAD program. The cutting process cycle is performed in the order of loading, vision processing, feeding, clamping, cutting and discharging. And the cycle time for cutting one piece was designed to be completed in four seconds.