A vehicle utilizes an internal combustion powertrain to propel front wheels and an Electric Rear Axle Drive (ERAD) to propel rear wheels. In some circumstances, a controller may need to limit motor torque in the ERAD to avoid overheating the motor, which reduces fuel efficiency. To reduce the likelihood of needing to limit motor torque, refrigerant from the vehicle air conditioning system is circulated through the motor housing. In response to commands from a controller, a valve routes the refrigerant either through the air conditioning system evaporator or through the motor housing.