A system for controlling airflow through an under-hood compartment of a vehicle body includes a stow-away air dam assembly disposed on the body and configured to control the airflow between the body and a road surface from outside the vehicle to the under-hood compartment. The air dam assembly includes a retractable portion and a drive shaft configured to shift the retractable portion between a stowed position and a deployed position. The retractable portion is set at a first height in the stowed position and at a second height in the deployed position, wherein the first height is greater than the second height relative to the road surface. The air dam assembly also includes an actuator configured to operate the driveshaft. The system additionally includes a controller configured to regulate the actuator. A vehicle employing the system is also disclosed.