Abstract: A power transfer system including a variable speed electric motor and a single speed transmission is disclosed for transferring power from a source of power to a pair of driven wheels. This arrangement is particularly adapted for use in electric vehicles incorporating a high speed electric motor. In a preferred embodiment, the single speed transmission includes a housing, an input shaft for receiving drive torque from the electric motor, at least one output shaft and an intermediate shaft supported for rotation of the housing between the input shaft and the output shaft. The single speed transmission further includes a parking sprag arrangement for preventing rotation of the output shaft when a park mode is selected.