Abstract: A system and method for reducing the cost of producing a brushless DC motor is presented. The brushless DC motor provides higher power density and efficiency with an increased tool run time. The brushless DC motor includes a rotor assembly that has an unmagnetized permanent magnet affixed to a shaft. The permanent magnet remains unmagnetized until the motor is partially assembled. A plurality of coils for producing a magnetic field are wound about the rotor assembly. The coils include end turns that enclose the rotor assembly such that the rotor assembly is not removable. Since the windings are wound with the rotor assembly already enclosed, the windings do not require large end coils to allow subsequent insertion of the rotor. Minimizing the end coils reduces the length of wire required per turn, thereby reducing the resistance of the winding.