A propulsion system designed for hybrid vehicles utilizing a first torque path from a coupled motor generator system and internal combustion engine through and automatically shifted manual transmission having a secondary torque path from a secondary torque source to the wheels. The system incorporates the high-efficiency of a manual transmission with the smoothness of the most advanced automatic transmissions by utilizing a second torque path to maintain driver requested torque during shifts and braking requests.

 
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< Apparatus and method for active driveline damping with clunk control

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