The impact of manufacturing tolerances on the performance of a permanent magnet synchronous generator is investigated. A generator with a flux concentrating spoketype rotor, with ferrite permanent magnets, is used in the investigation. Measurements of the air gap magnetic flux density, the air gap length, as well as the magnetization and size of the permanent magnets have been performed. Correlations are calculated and causalities are discussed. It is found that the permanent magnets used are below tolerance in remanent magnetic flux density, that the air gap length is smaller than specified, and that the resulting air gap magnetic flux density is lower than specified. From the results it can be concluded that the design should be made with tolerances in mind and that quality control of parts, especially of PM magnetization, is important for machine performance.