A hybrid transmission combining an internal-combustion (IC) engine and an electric generator is described which satisfies the requirements of long distance driving and slower driving in town traffic. This system consists of an engine with a clutch and a flanged-on electric motor, the clutch being engaged at a certain speed, so that both engines and transmission shaft turn together. When driving downhill or at a constant speed along level roads, normally only a certain percentage of the available output of the IC engine is needed, so that the rest of the output is used for charging the batteries - the electric motor working as a generator. The electric motor can also assist the IC engine when more output is required, as in climbing a steep hill or accelerating rapidly. In city traffic the vehicle uses electric drive only. Out of town or when the battery is nearly discharged the vehicle is driven as a hybrid.