The need to minimize carbon dioxide (CO2) emissions is becoming increasingly important with the total number of vehicles throughout the world exceeding one billion. Carbon dioxide emissions can be reduced by improving vehicle fuel efficiency. While electric transportation is gaining popularity, most passenger vehicles are still powered by gasoline or diesel engines. The main objective of this work was to provide opportunities for studying and improving the fuel efficiency of internal combustion engines (ICE). This was achieved by 1) Designing, building and testing auxiliary systems necessary to run a Cummins 2.8 L engine in a an engine test cell; 2) Creating educational labs for the ICE class; and 3) Measuring the parasitic losses of the vacuum pump and water pump on the installed Cummins 2.8 L diesel engine. All auxiliary systems were completed at a hardware cost of $8100 and are rated to support an engine with the power output capacity of 233 kW (312 hp). The educational laboratories enable future engineers to measure and assess the efficiency of internal combustions engines. The parasitic losses of the vacuum pump and water pump were found to impact the relative brake fuel conversion efficiency by 1.3% and 1.5% respectively over the Federal Test Procedure (FTP) cycle.