A vehicle has a motor and axles which are selectively rotatable by the motor, a reduction gear set, a differential transferring torque from the motor to the axles, and selectable one-way clutch (SOWC) assemblies. The SOWC assemblies are connected to a different one of the axles, and are engaged to transfer torque to the drive axles whenever the motor is energized. The SOWC assemblies are disengaged when the motor is de-energized to prevent rotation of the rotor and various elements of the reduction gear set and differential. A method minimizes parasitic spin losses in an electric rear drive motor (eRDM) system. The method includes engaging a pair of SOWC assemblies when the motor is on to transfer torque from the motor to the axles, and disengaging the SOWC assemblies when the motor is off to prevent rotation of a rotor and of elements of the reduction gear set and differential.