A hybrid vehicle is provided including an internal combustion engine mounted in a forward portion of the vehicle for driving engagement of a pair of wheels attached to a front axle. An electric motor is mounted in a rear portion of the vehicle for driving engagement of another pair of wheels through a rear axle. A set of batteries for powering the electric motor are stored in the trunk of the vehicle or beneath the trunk floor. A controller is used for controlling the driving engagement of the pair of axles by the electric motor and the internal combustion engine. More particularly, the electric motor is automatically operated to drive the rear wheels when increased horsepower is demanded such as during heavy acceleration or high speed cruising or when enhanced traction is required due to a slip condition.
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