An electric drive module for use in electric vehicles includes an electric traction motor, a geared reduction unit driven by the electric motor, a differential unit interconnecting a pair of axleshafts to a pair of wheels, and a disconnect mechanism for selectively coupling and uncoupling the geared reduction unit and the differential unit. The disconnect mechanism is configured to normally couple the geared reduction unit to the differential unit. The disconnect mechanism uncouples the geared reduction unit from the differential unit to prevent peak torque transients and torque reversals between the electric motor and the wheels.