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As regulations continue to require low and ultra-low vehicle emissions, Hybrid Electric Vehicles (HEV) are becoming an increasingly popular and attractive alternative to conventionally powered vehicles in the light, medium and heavy-duty markets. Computer modeling and simulations are used to develop HEV control algorithms and to investigate various system configurations. The use of simulations significantly reduces development time and expense. Additionally, the HEV designer is afforded a level of freedom to experiment with various algorithms and configurations without the expense of building prototypes for each new idea. This paper examines the modeling and simulation efforts currently being applied to hybrid electric vehicle development at Allison Transmission.