A permanent magnet (PM) machine includes a plurality of reconfigurable fault condition mechanisms disposed within a stator core portion, the plurality of reconfigurable fault condition mechanisms together automatically reconfigurable to reduce fault currents and internal heat associated with the PM machine during a fault condition. The plurality of reconfigurable fault condition mechanisms are disposed solely within the stator core portion according to one embodiment to automatically reduce stator winding fault currents and internal heat associated with the PM machine during a fault condition. A method of reconfiguring the fault condition mechanisms upon detecting a fault condition includes the steps of 1) selecting the plurality of reconfigurable fault condition mechanisms from a) a plurality of rotatable magnetically anisotropic cylinders disposed both within a stator back iron and stator slot openings, and b) a plurality of rotatable magnetically anisotropic cylinders disposed within a stator back iron and a sliding shield disposed with a stator slot opening portion of the stator core, and 2) reconfiguring the plurality of fault condition mechanisms together to automatically reduce fault currents associated with the PM machine upon detection of a fault condition.