There is a gap in the existing literature relating to the implementation of virtual teamworking for engineering collaboration, and concurrent engineering in particular. This paper discusses the development of a methodology focused on guiding companies implementing virtual teamworking for engineering collaboration. The key principle of the methodology is to consider the implementation of virtual teaming as a business project rather than as an IT project. The methodology is derived from an analysis of the key issues identified in the literature, and the empirical findings from an ESRC Innovation funded project on virtual teaming in the automotive supply chain. The methodology identifies 20 important activities around the three key areas of processes, people and technology. The methodology is currently being evaluated with first tier suppliers and SMEs in the automotive sector.