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This paper presents the requirements on a city car and how they have been derived. In addition, the design of a transverse flux permanent magnet excited machine for the use in an electric vehicle is introduced. The drive concept of the city car bases on two near-wheel motors. Transverse flux machines are capable for direct drive applications because of their very high torque density. Their speed range matches the required speed range of electric vehicles' wheels. The paper deals with the design and the further development of a lamination concept for a transverse flux permanent magnet excited machine, whereby the designed form closure leads to a improved mechanical clamping which allows higher tolerances of the laminated steel sheets. The design is optimized considering torque density and the applicability to electric vehicles based on a finite element method simulation.