Translation:The machine does not function, because the motor does not function.
Hmm... sort of, but actually no, I think "not working" is a better translation.
In English, if you say "The machine isn't functioning", you could just be telling me that it's switched off at the moment, whereas if you say "The machine doesn't work", it's quite clear that the machine is broken and needs repair. And that's what the Esperanto sentence is saying.
Absolutely :) The inclination of Funkcias is toward "Functioning".
Labori = To work (or do labor)
Funkcii = To function properly (is it broken or not.)
When we talk about a motor "doing work" that'd be -Labori- if we talked about a motor "Working" then we're wondering if it's functioning properly -Funkcii-
Hope this helps.