A system includes a proportional-integrated-derivative (PID) regulator. The system also includes a fault detection unit. The fault detection unit is for receiving at least two outputs from the PID regulator. The at least two outputs include at least two rotor reference frame (D-Q) currents. The fault detection unit is further for generating a detection signal based on the at least two rotor reference frame currents. The detection signal identifies a fault based on the fault detection signal amplitude value based on the magnitudes of the amplitudes for each of the at least two rotor reference frame D-Q currents. The fault detection unit is for identifying an existence of a permanent magnet motor fault based on a comparison between the fault detection signal amplitude value and an amplitude threshold value. Further the fault localization signature is utilized to locate the location of the fault.