A method for building a stator assembly for a rotary electric machine includes providing a plurality of axially extending teeth spaced circumferentially from one another to define slots therebetween. Cooling structure is provided in each slot. Stator windings are wound around the teeth and the cooling structures such that each winding is at least partially disposed in each slot. The windings are electrically connected to form a plurality of phases. The teeth, the cooling structures, and the windings cooperate to form a subassembly. An outer stator core is axially slid over the subassembly to connect the teeth to the outer stator core.