Electric drive systems, which include electric machines and power electronics, are a key enabling technology for advanced vehicle propulsion systems that reduce the petroleum dependence of the ground transportation sector. To have significant effect, electric drive technologies must be economical in terms of cost, weight, and size while meeting performance and reliability expectations. This paper will provide details of the design, analysis and testing of an advanced interior permanent magnet (IPM) machine that was developed to meet the FreedomCar 2020 specifications. The 12 slot/10 pole machine has segmented stator structure equipped with fractional-slot concentrated-windings (FSCW). The rotor has a novel spoke structure. Several prototypes with different thermal management schemes have been built and tested. The paper will cover the test results for all these prototypes and highlight the tradeoffs between the various schemes.