A number of hybrid propulsion systems were evaluated for application in several different vehicle sizes. A conceptual design was prepared for the most promising configuration. Various system configurations were parametrically evaluated and compared, design tradeoffs performed, and a conceptual design produced. Fifteen vehicle/propulsion systems concepts were parametrically evaluated to select two systems and one vehicle for detailed design tradeoff studies. A single hybrid propulsion system concept and vehicle (five passenger family sedan)were selected for optimization based on the results of the tradeoff studies. The final propulsion system consists of a 65 kW spark-ignition heat engine, a mechanical continuously variable traction transmission, a 20 kW permanent magnet axial-gap traction motor, a variable frequency inverter, a 386 kg lead-acid improved state-of-the-art battery, and a transaxle. The system was configured with a parallel power path between the heat engine and battery. It has two automatic operational modes: electric mode and heat engine mode. Power is always shared between the heat engine and battery during acceleration periods. In both modes, regenerative braking energy is absorbed by the battery.