The Deep Orange  initiative is an integral part of the automotive graduate program at Clemson University International Center for Automotive Research. The initiative was developed to provide the graduate students with hands-on experience of the knowledge attained in the various engineering disciplines and related disciplines (such as marketing and human factors psychology). For the 3rd edition of Deep Orange, the goal was to develop a blank sheet hybrid mainstream sports car concept targeted towards the Generation Y (Gen Y) market segment.The objective of this paper is to elaborate on the overall development process and the technology that was created and integrated. A unique all-wheel-drive (AWD) parallel hybrid concept was derived based on extensive analyses of the Gen Y market. The data revealed that Gen Y, as an environmentally conscious generation, is willing to invest in sustainable powertrain technologies and also has a significant interest in all-wheel-drive. Based on these findings, a through-the-road parallel hybrid powertrain concept with a manual transmission was conceptualized.The powertrain architecture comprises of a Front-Wheel-Drive (FWD) concept using a downsized turbocharged 4-cylinder Internal Combustion Engine (ICE) and a Rear-Wheel-Drive (RWD) concept using an electric machine. This configuration allows for regenerative braking, all-wheel-drive and power boost functionality. In the early development phase of the project, simulation models were developed for sizing the powertrain components using model-based design tools in order to achieve functional targets while carefully balancing cost, weight and design-space. This paper will elaborate on how the unique hybrid powertrain setup was developed based on a holistic systems engineering approach incorporating competing aspects such as performance, fuel economy, exterior/interior design and powertrain component packaging.