An axle assembly for an electric or hybrid vehicle includes electrically powered drive motors for respectively driving vehicle wheels. The axle assembly preferably includes a dual motor arrangement, wherein two electric motors are arranged end-to-end. Each motor includes an inverter that is directly connected to its respective motor, and includes a gearbox assembly coupled between an output of the motor and a corresponding constant-velocity (CV) joint operatively connected to a wheel. The inboard ends of the motors are secured to opposite faces of a cooling manifold wherein the cooling manifold maintains the motors in axial alignment. The cooling manifold plate is positioned between an inboard end of each of the motor housings, and the cooling manifold plate axially aligns the first and second motors. Further, each motor drives its respective gearbox assembly, which includes a gear reduction and clutch mechanism having a brake band assembly that is selectively operable to disconnect the respective motor from the vehicle wheel associated therewith.