The U.S. Department of Energy (DOE) and the U.S. Council for Automotive Research (composed of automakers Ford, General Motors, and Chrysler) announced in January 2002 a new cooperative research effort. Known as FreedomCAR (derived from 'Freedom' and 'Cooperative Automotive Research'), it represents DOE's commitment to developing public/private partnerships to fund high-risk, high-payoff research into advanced automotive technologies. Efficient fuel cell technology, which uses hydrogen to power automobiles without air pollution, is a very promising pathway to achieve the ultimate vision. The new partnership replaces and builds upon the Partnership for a New Generation of Vehicles initiative that ran from 1993 through 2001. The Advanced Power Electronics and Electric Machines (APEEM) subprogram within the Vehicle Technologies Program provides support and guidance for many cutting-edge automotive technologies now under development. Research is focused on understanding and improving the way the various new components of tomorrow's automobiles will function as a unified system to improve fuel efficiency. In supporting the development of hybrid propulsion systems, the APEEM effort has enabled the development of technologies that will significantly improve advanced vehicle efficiency, costs, and fuel economy. The APEEM subprogram supports the efforts of the FreedomCAR and Fuel Partnership through a three-phase approach intended to: (1) identify overall propulsion and vehicle-related needs by analyzing programmatic goals and reviewing industry's recommendations and requirements and then develop the appropriate technical targets for systems, subsystems, and component research and development activities; (2) develop and validate individual subsystems and components, including electric motors, and power electronics; and (3) determine how well the components and subsystems work together in a vehicle environment or as a complete propulsion system and whether the efficiency and performance targets at the vehicle level have been achieved.