GM has developed an all-new gasoline-electric hybrid powertrain for the model year 2016 Chevrolet Malibu Hybrid vehicle, which was designed to achieve excellent fuel economy, performance, and drive quality. The powertrain shares the transmission architecture with the 2016 Chevrolet Volt extended range electric vehicle, but includes changes to optimize the system for engine driven charge sustaining operation in the range of conditions represented by the US EPA 5 cycle fuel economy tests. In this paper, we describe the Malibu Hybrid propulsion system features and components, including the battery pack, transaxle, electric motors and power electronics, engine, and thermal system. The modifications between the Volt and Malibu Hybrid propulsion systems are discussed and explained as resulting from the differences between the primarily electric and gasoline powered applications. Additionally, operation of the propulsion system under nominal and cold fuel economy driving conditions is explained, and we present and discuss the efficiency and performance benefits and results of the new propulsion system.