A two mode automatic transmission for a motor vehicle includes a variable ratio component, a plurality of planetary gear assemblies, a chain drive assembly and a plurality of torque transmitting devices. A first planetary gear assembly is associated with an input shaft, a first clutch and a first brake and provides forward and reverse gears. The variable ratio component is driven by the output of the first planetary gear assembly and drives the second planetary gear assembly. The second planetary gear assembly, which may be either a simple or compound planetary assembly, is associated with a second clutch and a second brake and drives the chain drive assembly. The output of the chain drive assembly drives a third planetary gear assembly which is associated with an output shaft.