This paper presents the development of a parallel hybrid power unit for Formula SAE application. In particular, the system is made up of a brand new, single-cylinder 480 cc internal combustion engine developed on the basis of the Ducati “959 Superquadro” V90 2-cylinders engine. The thermal engine is assisted by a custom electric motor (30 kW), powered by a Li-Ion battery pack. The performance of the ICE has been optimized through CFD-1D simulation (a review of this activity is reported in a parallel paper). The main design goal is to get the maximum amount of mechanical energy from the fuel, considering the car typical usage: racing on a windy track. The Ducati “959 Superquadro” engine is chosen because of its high power-to-weight ratio, as well as for its V90 2-cylinder layout. In fact, the vertical engine head is removed and it is subsequently replaced by the electric motor directly engaged to the crankshaft using the original valvetrain transmission chain, thus achieving a very compact package. The mechanical behaviour of the original chain is investigated for this purpose. A specific electric motor case is then designed and manufactured via Additive Manufacturing technology, in order to include the chain housing, the electric motor cooling system and the lubrication system. Furthermore, the case flange is designed to perfectly fit to the original engine deck in order to allow the engine cooling circuit to match with the electric motor cooling circuit. Several types of circuit layout - around the stator - are analysed via CFD simulations comparing pressure drop and heat transfer coefficients. Finally, a thermo-structural analysis is performed in order to assess the mechanical strength of the electric motor case.