A power transfer assembly for use in a motor vehicle and having a
hydraulic coupling operable to transfer drive torque to a driveline in
response to slip. The hydraulic coupling includes a transfer clutch, a
clutch operator for engaging the transfer clutch, a fluid actuation
system including a fluid pump for controlling movement of the clutch
operator, and a magnetorheological pump clutch capable of selectively
shifting the fluid pump between operative and inoperative states.