A vehicle includes an engine and driven wheels each having an associated friction brake. A brake pedal is operable to engage the friction brakes. The vehicle includes a transmission having an input shaft driveably connected to the engine, an output element driveably connected to the driven wheels, and a gear mechanism adapted to establish at least one torque flow path between the input shaft and the output element. The transmission further includes a shift element that interrupts the torque flow path when disengaged. A gear selector is disposed in the passenger cabin and includes at least one forward-drive position, a reverse position, and a neutral position. At least one vehicle controller is configured to, in response to the gear selector being in the forward-drive position, a speed of the vehicle being zero, the vehicle being within a first predefined distance of a stoplight, and the brake pedal being depressed, disengage the shift element to put the transmission in neutral idle.