A method of generating and controlling power for an alternating current (AC) motor by means of at least one controlled permanent magnet machine (PMM) with a permanent magnet (PM) rotor and a stator with a magnetic flux diverter circuit for controlling the output of the PMM, comprises the steps of: rotating the PM rotor at a velocity sufficient to develop a high frequency alternating current (HFAC) power output from the stator; transforming the HFAC output to produce a variable low frequency alternating current (AC) motor control output for the motor; sensing desired motor control parameters; generating a control signal responsive to the sensed parameters; and applying the control signal to the magnetic flux diverter circuit to control the motor control output.