A variable geometry concept for advanced turbocharger (TC) systems is presented. The variability of the device is based on outlet area changes as opposed to the more common systems that are based on inlet turbine geometry changes. In addition to the conventional variable turbine geometry (VTG), the new variable turbine type is termed variable outlet turbine (VOT). The flow variability is achieved by variation of the flow cross section at the turbine outlet using an axial displacement of a sliding sleeve over the exducer and provides a simple solution for flow variability. In order to predict the aerodynamic performance and to analyze the loss mechanisms of this new turbine, the flow field of the VOT is calculated by means of steady state 3D-CFD (computational fluid dynamics) simulations. The VOT design is optimized by finding a good balance between clearance and outlet losses. Furthermore, experimental results of the VOT are presented and compared to a turbine equipped with a waste gate (WG) that demonstrates an efficiency advantage of 5%. Additionally, engine performance measurements were carried out to investigate the influence of the VOT on fuel consumption and to asses the functionality of the new pneumatic actuating system. The VOT engine tests show also performance advantage in comparison to a WG turbine especially toward high engine loads. It is found that the use of the VOT at this condition shows a turbine efficiency advantage of 6% related to a reduction in engine fuel consumption of 1.4%. The behavior at part load is neutral and the peak turbine efficiency of the VOT is comparable with a fix turbine geometry.