An alternating current generator for vehicle has a permanent magnet in the rotary field core unit. Providing such magnet is effective to reduce leakage magnetic flux and the size of the machine. In order to magnetize the magnet without trouble caused by machined chips or iron powder, the magnet is magnetized after the rotary field core has been machined. While the magnet is magnetized in a short period by a pulse current, the field coil is short-circuited. The field coil is subjected to magnetizing flux passing therethrough and generates short-circuit current and, consequently, counter magnetomotive force, which prevents leakage of the magnetizing flux.