An electric drive system comprising: a plurality of heat sensitive components (14, 16, 18, 20); at least one temperature sensor (14-1, 16-1, 18-1, 20-1) positioned in or on each of the plurality of heat sensitive components (14, 18, 16, 20), said heat sensitive components including a motor controller; a system controller comprising a temperature monitor, a reference unit, a processor and a command generator, the temperature sensors (14-1, 16-1, 18-1, 20-1) being interconnected with the system controller to transmit temperature data (14-2, 16-2, 18-2, 20-2) from their respective heat sensitive components (14, 18, 16, 20) to the temperature monitor of the system controller, the temperature monitor being interconnected to the processor to transmit a threshold exceed signal, the reference unit being configured to store component-specific functional relationships between types, magnitudes and/or rates of performance reduction and corresponding rates of temperature decrease produced by a particular performance reduction, the processor being interconnected with the reference unit to determine a type and magnitude of performance reduction needed to reconcile the threshold-exceed signal, and the processor being interconnected with the command generator configured to produce a performance reduction command to the motor controller in the event that a reached temperature-threshold-limit signal is received from any one or more of the temperature sensors (14-1, 16-1, 18-1, 20-1). a plurality of heat sensitive components (14, 16, 18, 20); at least one temperature sensor (14-1, 16-1, 18-1, 20-1) positioned in or on each of the plurality of heat sensitive components (14, 18, 16, 20), said heat sensitive components including a motor controller; a system controller comprising a temperature monitor, a reference unit, a processor and a command generator, the temperature sensors (14-1, 16-1, 18-1, 20-1) being interconnected with the system controller to transmit temperature data (14-2, 16-2, 18-2, 20-2) from their respective heat sensitive components (14, 18, 16, 20) to the temperature monitor of the system controller, the temperature monitor being interconnected to the processor to transmit a threshold exceed signal, the reference unit being configured to store component-specific functional relationships between types, magnitudes and/or rates of performance reduction and corresponding rates of temperature decrease produced by a particular performance reduction, the processor being interconnected with the reference unit to determine a type and magnitude of performance reduction needed to reconcile the threshold-exceed signal, and the processor being interconnected with the command generator configured to produce a performance reduction command to the motor controller in the event that a reached temperature-threshold-limit signal is received from any one or more of the temperature sensors (14-1, 16-1, 18-1, 20-1). the temperature sensors (14-1, 16-1, 18-1, 20-1) being interconnected with the system controller to transmit temperature data (14-2, 16-2, 18-2, 20-2) from their respective heat sensitive components (14, 18, 16, 20) to the temperature monitor of the system controller, the temperature monitor being interconnected to the processor to transmit a threshold exceed signal, the reference unit being configured to store component-specific functional relationships between types, magnitudes and/or rates of performance reduction and corresponding rates of temperature decrease produced by a particular performance reduction, the processor being interconnected with the reference unit to determine a type and magnitude of performance reduction needed to reconcile the threshold-exceed signal, and the processor being interconnected with the command generator configured to produce a performance reduction command to the motor controller in the event that a reached temperature-threshold-limit signal is received from any one or more of the temperature sensors (14-1, 16-1, 18-1, 20-1).