A two speed transmission includes an input shaft; a lay shaft spaced from the input shaft; a first
gear train connecting the input shaft to the lay shaft; a second
gear train connecting the lay shaft to an output shaft the
gear train including a one way
clutch or similar; and a
clutch for engaging the input shaft with the output shaft. The transmission is arranged such that when the output shaft is disengaged from the input shaft power is transmitted to the output shaft via the first and second gear trains and the lay shaft. When the
clutch is disengaged, power is transmitted from the input shaft via the gear trains and the lay shaft via the one way clutch to the output shaft which typically provides first or low gear for use in
low speed maneuvering or where greater torque is required. With the clutch engaged, power may be transmitted from the input shaft directly to the output shaft to provide a second gear for when the
watercraft is cruising. This
transmission system has the
advantage of being extremely compact and since, it requires only a single clutch, provides reduced drag compared with transmission systems incorporating more than one clutch. Advantageously, the default for the transmission has the one way clutch or similar in the first or lower gear, with the clutch normally on, so that if the
system fails, it is always possible for the boat owner to get the boat home albeit at a slower speed.