Electric motors for vehicle applications are required to have high efficiency and small size and weight. Accurately modeling the thermal properties of an electric motor is critical to properly sizing the motor. Improving the cooling of the motor windings allows for a more efficient and power-dense motor. There are a variety of methods for predicting motor temperatures, however this paper discusses the advantages and accuracy of using a nodal lumped thermal model. Both commercially available and proprietary motor thermal modeling software are evaluated and compared. Thermal improvements based on the model in both contact interfaces and winding encapsulant are evaluated, showing motor improvements in the ability to handle heat losses of approximately forty percent greater than the baseline, resulting in either higher power or lower motor temperatures for the same package size.