Electrically variable transmission with a ferrite magnet motor and multi-mode method of operation

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A hybrid vehicle includes an internal combustion engine, a ferrite magnet motor and a rare earth magnet motor. When the vehicle is cruising at a steady speed, an electrically variable transmission mode of a transmission configures the rare earth magnet motor to provide a reaction force to the ferrite magnet motor so that the ferrite magnet motor operates at a high speed/low torque condition to minimize torque dependent losses in the ferrite magnet motor. When the vehicle is accelerating at higher speeds, a first torque transmitting mechanism provides a reaction torque to the ferrite magnet motor to eliminate the torque dependent losses in the ferrite magnet motor.