Featured Application: The results of this work can be included in the design stage of modular permanent magnet synchronous machines for fault-tolerant applications. Addressing stator-rotor misalignment, usually called eccentricity, is critical in permanent magnet (PM) machines since significantly high radial forces can be developed on the bearings, which can trigger a major fault and compromise the structural integrity of the machine. In this regard, this paper aims to provide insight into the unaddressed identification and analysis of the impact of eccentric tolerances on relevant performance indices of permanent magnet synchronous machines (PMSMs) with modular stator core. Static and dynamic eccentricity are assessed for different slot/pole combinations through the finite element method (FEM), and the results are compared with those of PMSMs with a conventional stator core. The unbalanced magnetic forces (UMF), cogging torque, back-emf, and mean torque variations are described and related to the eccentricity magnitude and classification. The main findings indicate that severe radial forces and significant additional cogging torque harmonics are generated because of eccentricity. Additionally, it is found that the main differences between modular PMSMs and conventional PMSMs rely on the value of slots per pole per phase.