Abstarct: Permanent magnets (PMs) are mostly used in recent applications of the electrical machinery. PM machines present high efficiencies due to lack of excitation losses. Using PMs also reduces the weight and size of the machine. This yields to some increases of torque and power densities. This structure of the machine also is more simple and robust. Since the permanent magnets in a PM machine play a vital rule, even a minor variation of their magnetic properties can reduce the quality of the machine performance significantly. The demagnetization is one of the phenomena that may cause a major change in the properties of magnets. This phenomenon, depending on its intensity, will change the machine performance characteristics via altering the amplitude and waveform of the Back EMF. However, despite of many undesirable effects, demagnetization phenomenon is not taken into account precisely by the common design algorithm when designing the machine. This thesis presents a modified approach for designing and modeling of the permanent magnet machines. The proposed method considers the effects of demagnetization properly. The suggested algorithm is implemented for modeling of an axial flux permanent magnet motor. Simulation results presented in this report show that the classical designing and modeling method may produce inaccurate values related to the performance of the machine. Moreover this report illustrates the benefit of applying a damper cage regarding the demagnetizing if for some reasons, reducing the armature currents is unavoidable in the transient operation regimes. It is also shown that, regarding the demagnetizing aspects, we can employ other PM type motors e.g. Transverse Flux Permanent Magnet (TFPM) motor instead of axial flux motor with similar power and other main operating characteristics. It is nice to be mentioned that the claw pole machine is a type of TFPM with a robust structure against demagnetization which is studied in this thesis as an alternative for the AFPMs.