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In recent years, several transit agencies have tested buses equipped with hybrid powertrain systems. It has been reported that hybrid powertrains have significant advantages over conventional diesel engine systems, in the area of emissions and fuel economy performance. Presented in this paper are engineering issues and suggestions from an auto component supplier point of view in the design of such a powertrain system. The particular system being considered consists of a downsized diesel engine, a generator, a battery package, two identical AC induction motors, and gearbox systems for the left and right driven wheels. The assembly is supported by an H-shaped suspension sub-structure uniquely designed to achieve the “ultra-low floor” configuration. Our discussion covers the system performance, as well as the durability issues. In particular, the presentation focuses on the durability and the design layout of the gearbox and suspension substructure.