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The paper presents the design optimization of a passenger car’s steering system for minimizing the Ackermann error and the turning radius during steering maneuvers. The virtual models of the suspension system and the steering system have been made using ADAMS/Car software. Both systems were configured based on a compact class passenger car. The positions of the spherical joint on the three axles of the lower control arm and the positions of the outer joint on the three axles of the steering tierod were chosen as design variables. The objectives of the design optimization analysis were the Ackermann error and the turning radius, both to be minimized. By minimizing the Ackermann error, the front wheels will have less side slippage during cornering so the wear of the tire will be reduced. For urban passenger cars the turning radius of the car is an important factor for the car’s maneuverability so minimizing it is a positive aspect. For both the virtual models (initial and optimized) the Ackermann error and the turning radius variation were plotted.