Hybrid cars too - Toyota, Ford, Chrysler, et al - almost all use a dual-motor/generator system with a planetary gearset to allow direct drive. At slow speeds, the engine is basically just to power the first motor/generator, which powers the second one. The transmission shifts power to direct engine by spinning the first motor/generator less, causing physical force to instead be transmitted through the planetary gearset. It's ingenious, and was invented in 1969.

Honda uses a different system where the engine is just a generator until highway speeds, when a wet cluch engages engine to wheels.