Surface topology, cone angle and the forces acting on the cone of the clutch type limited slip differential (LSD) are major design parameters for the bias ratio and the noise condition. Therefore much research has been dedicated to these developments but the results have been used to submit patents. A new cone type limited slip differential for sport utility vehicles and recreational vehicles, which has a very simple structure and easy compliance with the vehicle performance, has been developed by the axiomatic approach and the ultrasonic nano crystal surface modification (UNSM) technology. The design criteria and optimal value of the design parameters are determined by the axiomatic approach utilizing CAE tools. Test methodologies in a test rig and in a vehicle were also developed. Test results showed good performance of bias ratio and noise level but durability is still under testing. This study is an extension of F2006P266, FISITA 2006.