The paper explores the application of Web 2.0 technologies to support product development efforts in a global, virtual and cross-functional setting. It analyses the dichotomy between the prevailing hierarchical structure of CAD/PLM/PDM systems and the principles of the Social Web under the light of the emerging product development trends. Further it introduces the concept of Engineering 2.0, intended as a more bottom up and lightweight knowledge sharing approach to support early stage design decisions within virtual and cross-functional product development teams. The lessons learned collected from a cross-company study highlight how to further developblogs, wikis, forums and tags for the benefit of new product development teams, highlighting opportunities, challenges and no-go areas.