A power transfer unit for transferring a torque comprising a first shaft configured to receive the torque from a first device, a second shaft configured to output the torque to a second device, and an activating assembly for selectively transferring the torque from the first shaft to the second shaft. The activating assembly includes a sliding cam, a rotating cam, an actuator configured to selectively rotate the rotating cam relative to the sliding cam, and an engaging gear. The gear is configured to be moved by the sliding cam between a first engaged position where the torque is transferred from the first shaft to the second shaft through the gear and a second disengaged position where no torque is transferred to the second shaft. Relative rotation between the rotating earn and the sliding cam moves the sliding earn thereby moving the gear between the first engaged and second disengaged position.