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This paper describes a variable magnetomotive force interior permanent magnet (IPM) machine for use as a traction motor on automobiles in order to reduce total energy consumption during duty cycles and cut costs by using Dy-free magnets. First, the principle of a variable magnetomotive force flux-intensifying IPM (VFI-IPM) machine is explained. A theoretical operating point analysis of the magnets using a simplified model with nonlinear B-H characteristics is presented and the results are confirmed by nonlinear finite element analysis. Four types of magnet layouts were investigated for the magnetic circuit design. It was found that a radial magnetization direction with a single magnet is suitable for the VFI-IPM machine. Magnetization controllability was investigated with respect to the magnet thickness, width and coercive force for the prototype design. The estimated variable motor speed and torque characteristics are presented.