In this paper, the element combination algorithm for designing an arbitrary type of the automatic transmissions is proposed. The powertrain simulation software using this algorithm is then developed. The deliveries of the angular velocities and torques are only considered for the motion characteristics of the automatic transmissions. The effects of the vibration and noise are not considered. The automatic transmission is defined by the basic elements, i.e., planetary gear set, clutch, brake, shaft, general gear, and inertia. The transmission system is defined by the combination of these elements. The element combination matrices automatically generate the equations of motion for each shift. The self error-correcting algorithm is also developed to verify the element combination algorithm. This automotive powertrain simulation/design software with user-friendly graphic user interface has two main modules. The first module, the automatic powerflow generation module, mainly consists of the automatic powerflow and component generation algorithms. This paper covers the theory and application for the first module. The second module deals with the automatic system generation algorithm and will be discussed in the second paper.