An axle assembly comprises a power transmission device including a housing having a cylindrically shaped sidewall. The power transmission device selectively communicates rotatable motion from an input member to an output member. A frictional clutch is disposed in the housing and includes a drum. A first and a second axle shaft selectively drive a first and a second drive wheel, respectively. A differential selectively transfers drive torque from the output member to at least one of the first and second axle shafts. An electric motor comprising a coil and a plurality of magnets is provided on the axle assembly. In one example, the coil is disposed on the housing and the magnets are disposed on the drum. The coil is configured to selectively energize to provide one of a positive or negative torque input to the output member.