The method of the present invention provides a variety of vehicle performance characteristics depending on the mode of operation. A first routine is initiated to provide an optimal balance of powertrain responsiveness and fuel economy for any given combination of vehicle speed and deceleration rate. The first routine may, according to a preferred embodiment, include a plurality of routines that are each configured to provide an optimal balance of powertrain responsiveness and fuel economy within a predefined range of vehicle speeds and deceleration rates. A second routine is initiated if said deceleration rate is within a predefined range. The second routine includes running the electric motor/generator while the hybrid vehicle is being stopped in order to control the driveline lash and thereby minimize disturbances during a subsequent engine re-start.