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A vehicle drivetrain is designed to meet specific vehicle performance criteria which usually involve trade-offs among conflicting performance measures. This paper describes a methodology to optimize the drivetrain design including the axle ratio, transmission shift points and transmission shift ratios considering uncertainty. A complete vehicle dynamic model is developed using the bond graph method. The model includes the vehicle, engine, transmission, torque converter, driveline, and transmission controller. An equivalent MATLAB Simulink model is also developed in order to carry out the nonlinear dynamic analysis efficiently. A deterministic optimization is first performed to determine the optimum design in terms of fuel economy, without considering variations or uncertainties. Subsequently, a Reliability-Based Design Optimization is carried out to find the optimum design in the presence of uncertainty.