Abstract: A modular pinion gear housing subassembly and method for making same, wherein the modular concept allows for testing and calibration of critical steering gear components prior to final assembly onto a electrically assisted rack and pinion power steering assembly, increases packaging efficiency, and increases potential for commonality of parts between vehicle platforms. The modular pinion gear housing subassembly comprises as its main components a pinion shaft having an input portion and an output portion, a pinion gear, a gear mechanically coupled to the pinion shaft, and a torque sensor coupled to the pinion shaft. The modular pinion gear housing subassembly is substantially contained within a pinion housing, with the input portion and the pinion gear extending from the housing and available to be coupled with other power steering components.