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We have developed an electronically controlled four-speed automatic transmission with a "D-range neutral control system" for vehicles of small piston displacements (0.66 to 1.0 liter). When the vehicle is stationary with the engine idling, the system reduces the pressure being supplied to the clutch, thereby creating a neutral clutch condition. This helps reduces fuel consumption of the stationary vehicle without intervention of the driver. The non-intervention, however, can cause discomfort for the driver when the system is engaged and disengaged as the vehicle condition (i.e., engine revolution speed, vibration or noise transmitted to the vehicle) may change noticeably. Such a cause of discomfort that surfaced during the system development stage was thoroughly investigated and successfully eliminated by improving the method of control.