An automatic transfer switch system includes a contact subsystem having a plurality of movable contact members, including at least one first movable contact member and at least one second movable contact member at first and second locations, respectively, and at least one fixed contact member. The switch system further includes a permanent magnet operating mechanism that controls opening and closing of the movable contact members relative to the fixed contact member, generates a holding force to maintain a state of the at least one first movable contact member at the first location and a state of the at least one second movable contact member at the second location, and connects to the subsystem via a linkage, and a solenoid permitting movement of the at least one first movable contact member and the at least one second movable contact member at the first and second locations, respectively.