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A new permanent-magnet (PM) hybrid brushless (PMHB) machine is proposed and implemented as the integrated starter-generator (ISG) for hybrid electric vehicles (HEVs). It has the advantages of higher torque density than other PMHB machines and much wider speed range than other PM brushless machines. The key is to tune its dc-field winding current in such a way that three major modes of ISG system operation for HEVs, namely, engine cranking, battery charging, and torque boosting, can be achieved effectively. The finite-element method is employed to simulate its steady-state and dynamic performances. Finally, a 2-kW prototype is constructed and tested to experimentally verify the simulation results and the validity of the proposed ISG system.