A hybrid vehicle includes an internal combustion engine, an electrical motor, and a drive wheel associated with the electric motor. The drive wheel has a hub, and an axle extending into the hub. The hybrid vehicle also includes a rechargeable battery, and a power circuit for driving the electric motor by drawing power from the rechargeable battery. An electronic torque management unit controls the internal combustion engine and the electric motor. The electric motor is reversible and includes a ferromagnetic pack mounted on the axle for forming a stator within the hub of the drive wheel, and a rotor is mounted adjacent the stator within the hub of the drive wheel.