This research presents a new Artificial Intelligence (AI) based product development approach for integrating mechanical design with electronic design to improve design and manufacture of electromechanical products by avoiding design conflicts in the early stages of the design process. The proposed approach has been implemented in a Delphi based environment integrated with a CAD system. The system assists designers from different disciplines in evaluating complex systems as far as parts relation, potential effects on each other, conflict management, costs, weight and physical constraints are concerned in the early design stages. This helps the designers to avoid design iterations leading to longer lead-time, hence increased cost. The developed system enables to rapidly develop and evaluate new complex products and add new functions to the existing products within given constraints.