A drive unit for a hybrid electric motor vehicle includes a bevel pinion driveably connected to a power source, a bevel gear meshing with the bevel pinion and aligned with an axis, first and second drive shafts, a differential mechanism including an input secured to the bevel gear for transmitting power between the input and the first and the second drive shafts, an electric motor/generator including a rotor, and a planetary gear set driveably connected to the input and the rotor for transmitting power between the rotor and the input such that a speed of the rotor is greater than a speed of the input.