MATRANS aims at development of novel metal-ceramic functionally graded materials (FGMs) for aerospace and automotive applications in: (i) exhaust and propulsion systems, (ii) power transmission systems, and (iii) braking systems, with the main objective to enhance the mechanical properties of these materials through spatial variations of material composition and microstructure. Specifically, MATRANS deals with two groups of bulk FGMs: (i) ceramics-copper/copper alloys, (ii) ceramics-intermetallics. These FGM systems have not yet been used in the transport sectors targeted. The MATRANS methodology is problem oriented and comprehensive combining interrelated activities of material processing (core activity of the project), characterisation, modelling and demonstration. The processing will encompass starting materials (e.g. nanopowders) and the resulting FGMs. Characterisation of the FGMs will include detailed description of microstructure, measurements of physical and mechanical properties and residual stresses. The modelling will be carried out at a design phase and for the material response to combined thermomechanical loading and extreme service conditions. Extensive use of multiscale approaches and numerical methods will be made. The project addresses the joint design of the FGM and the structural component it is intended for. Economical and ecological aspects of processing are included. Risks aspects of material non-performance will be tackled, too. MATRANS has mobilized a critical mass of interdisciplinary expertise and highly specialized equipment. The consortium includes leading groups from materials science, physics, chemistry, mechanical engineering and computer science. The industry and SME involvement in the project is substantial. As the exploitation measures, the industrial partners will define business plans and start pilot cases during the project, followed by upscaling activities after the project end.