Hybrid-electric vehicles have been available to consumers for over a decade, and plug-in hybrid and pure electric vehicles are rapidly becoming mainstream products with the introduction of vehicles such as the Chevrolet Volt and the Nissan Leaf in 2011. These vehicles have in common an electric powertrain, comprised of one or more electric motors and of a battery pack which in the case of hybrid vehicles supplements and internal combustion engine. It is well understood that hybrid and electric vehicles have the benefit of significant reduction in CO 2 emissions and in the use of petroleum as a fuel. However, one additional benefit of hybrid and electric vehicles remains so far under-utliized: the use of the electric traction system to enhance vehicle stability control. This potentially or low cost feature could provide additional motivation for customers to choose hybrid or electric vehicles over conventional ones. This dissertation documents the conception and development of a novel control strategy to allocate braking and tractive forces in a hybrid electric vehicle equipped with axle motors, for the purpose of enhancing the vehicle stability control system. The work described in this dissertation documents the development of a hierarchical control strategy, its design and stability proofs, and its evaluation using software and model inthe-loop methods. I express my deepest gratitude to my adviser Prof. Giorgio Rizzoni for his guidance, criticism, encouragements and logistic support throughout the research. Special thanks go to my co-adviser Prof. Junmin Wang for the advice and direction he gave me without which this work could not have been conducted. Also, I am grateful to other members of my dissertation committee, Prof. Dennis Guenther and Dr. Gary Heydinger who have contributed to this work with valuable suggestions. I feel very privileged to have all of you in my dissertation committee. Finally, I would like to thank my parents, Akif Bayar and Leyla Bayar by heart, for their moral support and self-sacrifice throughout my whole life. I offer sincere thanks to my elder brother Fırat Bayar, my grandparents Özden and Şerafettin Seyhun, and my former "yol arkadaşım" Tuğba Özal for their support in moral and academic respect.