A method for controlling driveline stability in a vehicle includes generating an activation signal indicative of a predetermined vehicle maneuver, which may include a hard braking maneuver on a low coefficient of friction surface. A quick automatic shift to a neutral gear state is executed with a rapid dumping or bleeding off of clutch pressure in a designated output clutch of the vehicle. An activated state of an antilock braking system (ABS) may be used as part of the activation signal. The shift to the neutral gear state may occur only when a current transmission operating state is associated with the high level of driveline inertia. A vehicle includes a transmission and a control system configured to execute the above method.