An all-wheel-drive vehicle includes a primary axle operably coupled to an engine and a secondary axle having an input operably coupled to the engine a first halfshaft, a second halfshaft, a first clutch selectively connecting the first halfshaft to the input, and a second clutch selectively connecting the second halfshaft to the input. A transmission has an input coupled to the engine and output coupled to the primary drive axle. A driveshaft couples a power-transfer unit and the input, and a third clutch selectively couples the output to the driveshaft. A controller is programmed to, during a power-limiting routine, command a torque to the engine based on closed-loop feedback control such that the torque decreases when a calculated slip of a selected one of the first and second clutches is greater than a target slip of the selected clutch and increases when the calculated slip is less than the target slip.