A hybrid vehicle includes an engine and an electric machine selectively coupled to the engine via a clutch. The engine, electric machine, and clutch are arranged along a common axis. At least one controller is programmed to execute various commands when the vehicle is in park or neutral and the accelerator pedal of the vehicle is depressed. This enhances perceived vehicle reactions in response to accelerator pedal movement. To do so, the controller is programmed to control a rate of speed increase of the electric machine based on a rate of the depression of the accelerator pedal (e.g., “speed control”). Furthermore, the torque output of the engine is controlled to a target value irrespective of engine speed and engine torque is converted into electric energy via the electric machine (e.g., “torque control”). The rate of speed increase of the electric machine is altered when the engine is started.