A method for operating an electric machine of a ground vehicle includes periodically determining an aging parameter based upon a temperature of the electric machine and periodically determining a short-term aging effect based upon the periodically determined aging parameter. A long-term aging effect is determined based upon the short-term aging effect. A short-term temperature adjustment is determined based upon the short-term aging effect and a long-term temperature adjustment is determined based upon the long-term aging effect. A temperature-based derated motor torque is determined based upon the long-term temperature adjustment and the short-term temperature adjustment. Operation of the electric machine is controlled responsive to an operator command for torque based upon the temperature-based derated motor torque.