Abstract: A machine tool apparatus includes a transfer arm assembly and a carriage assembly. The transfer arm assembly includes a housing with a tooling end adapted to carry a tooling bit extending therefrom, a spindle extending from the housing for engagement by a chuck, and at least a first drive shaft for transferring rotational motion from the spindle to the tooling end. The tooling end is adapted to carry the tooling bit for rotation about a tooling axis that is angularly offset from a rotational axis of the first drive shaft. The carriage assembly carries the transfer arm assembly and is adapted to allow translation of the transfer arm assembly in at least two directions.