The history of automotive electrical systems began in 1912 with an integrated starter/generator system (i.e. the Kettering DELCO system.). These systems were soon replaced by a separate starter and generator and later replaced by alternators, which now produce about 2kW. The 21st century will debut with intense interest in integrated starter/alternator/damper (ISAD) systems in the 5–20 kW range. This large increase in available electric power will catalyze many new luxury, performance and convenience features––and provides modest amounts of supplemental traction. The mechatronic technology of these systems will be nearly identical to more powerful parallel hybrid systems.This paper presents an advanced ISAD system for internal combustion (IC) engines and hybrid electric vehicle applications to reduce fuel consumption, reduce emissions, and enhance energy efficiency. The new starter–alternator combination provides a more efficient and higher output platform, which will provide the vehicle designer unique ways to reengineer many functions under the hood. Virtually any accessory, which is presently belt driven, may be converted to an electrically powered counterpart with the ready availability of more electrical power from the larger alternator component of the system. Hydraulic power steering units, belt driven air conditioning compressors, various fluid pumps and their components could be replaced with more efficient electric motor–driven systems powered by the ISAD. Starting motor advantages of the new ISAD system include a quiet start feature because the gears and whine of the traditional starter will be eliminated. This system will be able to increase the starting speed and it also supports the acceleration phase. The total system weight is nearly the same. The ISAD system provides all the functions of engine starter motor and alternator in one electric system installed between the engine and gearbox without significantly increasing the weight and volume of the vehicle. The system has been demonstrated for passenger cars and it can be used in commercial vehicles as well.