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A new electronically controlled transaxle has been put into production for Chrysler's family of LH cars. Among the attributes of this new transaxle are its ability to handle engines of high torque and high power coupled with high-speed shifts. Engine torque management is used in specific operating regimes. A feature of the transaxle is electronic modulation of the converter clutch. A number of logic features have been combined with hardware to provide good performance and shift quality over a wide operating range. An output transfer chain and a hypoid gear set are used to provide torque to the front wheels in a longitudinal power train orientation. Obtaining acceptable endurance life of the hypoid gears within an aluminum housing presented a significant challenge. New approaches were required to provide a chain-sprocket system with acceptable noise characteristics.