A method, computer program product, and information handling system for generating mixed-mode operations in the compilation of program code for processors having vector or SIMD processing units is disclosed. In a preferred embodiment of the present invention, program instructions making up the body of a loop are abstracted into virtual vector instructions. These virtual vector instructions are treated, for initial code optimization purposes, as vector instructions (i.e., instructions written for the vector unit). The virtual vector instructions are eventually expanded into native code for the target processor, at which time a determination is made for each virtual vector instruction as to whether to expand the virtual vector instruction into native vector instructions, into native scalar instructions, into calls to pre-defined library functions, or into a combination of these. A cost model is used to determine the optimal choice of expansion based on hardware/software constraints, performance costs/benefits, and other criteria.