Abstract: The present invention employs a hydraulically operable piston and intermediate member to control two clutches in a first planetary gear set. The first planetary gear set includes a first sun gear, a first planet gear, a first planet carrier and an inner ring gear. the first planet carrier includes a gear which drives a second planetary gear set resulting in rotation of a wheel hub. With hydraulic pressure applied to the piston and the intermediate member a first clutch is engaged locking an inner ring gear to a stationary outer ring effecting a high ratio reduction. With no hydraulic pressure applied to the piston and intermediate member a second clutch engages the first sun gear and the first planet carrier locking them together such that the first sun gear, first planet gear, first planet carrier and inner ring gear rotate in unison effecting a low ration reduction. With no hydraulic pressure applied, the first clutch is not engaged.