The Hybrid Electric Vehicle Team (HEVT) of Virginia Tech is participating in the 2011-2014 EcoCAR 2 competition in which the team is tasked with re-engineering the powertrain of a GM donated vehicle. The primary goals of the competition are to reduce well to wheels (WTW) petroleum energy use (PEU) and reduce WTW greenhouse gas (GHG) and criteria emissions while maintaining performance, safety, and consumer acceptability. This paper will present systematic methodology for using model based design techniques for architecture selection, control system design, control strategy optimization, and controller validation to meet the goals of the competition. Simple energy management and efficiency analysis will form the primary basis of architecture selection. Using a novel method, a series-parallel powertrain architecture is selected. The control system architecture and requirements is defined using a systematic approach based around the interactions between control units. Vehicle communication networks are designed to facilitate efficient data flow. Software-in-the-loop (SIL) simulation with Mathworks Simulink is used to refine a control strategy to maximize fuel economy. Finally hardware-in-the-loop (HIL) testing on a dSPACE HIL simulator is demonstrated for performance improvements, as well as for safety critical controller validation. The end product of this design study is a control system that has reached a high level of parameter optimization and validation ready for on-road testing in a vehicle.