An automatic four-wheel-drive vehicle having a multiple-ratio transmission with a torque output shaft connected drivably to a rear driving axle and a transfer gear box having a front drive shaft connected drivably to a front axle, the transfer case providing a four-wheel low-drive mode, a neutral mode and a two-wheel-drive/automatic four-wheel drive mode, an electric motor adapted to shift the transfer case from one mode to another mode and an electronic controller responsive to predetermined driving conditions for effecting an automatic shift of the transfer case from either a forward drive mode or a reverse drive mode to the neutral drive mode whereby the vehicle is conditioned for towing by interrupting the torque flow path from the rear drive wheels of the vehicle to the transmission mechanism and transfer case.