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Much like a mechanical limited-slip differential, torque vectoring subtly pulses the brake of the inside front wheel in a corner, directing more torque to the outside wheel, actually helping bend the car into a corner.
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The computer-control system can then apply the brake on the wheel concerned, and even adjust the amount of engine torque sent to that wheel, so that skidding is prevented.
ECONOMIST: MONITOR
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The signature piece in this car is the all-wheel-drive system, which can shunt most of the engine torque to the rear wheels as necessary and will direct more torque to the outside rear wheel in a corner to help null out understeer.
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Because cars with rear-wheel drive not only don't torque steer (front wheels, upon hard acceleration, fighting the driver's navigating intentions), but have a more natural feeling both entering and leaving a turn.
FORBES: Overview
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Torque steer (the tendency of front-wheel drive cars to pull to the side upon acceleration) is a problem with the Beetle, especially when you have a heavy right foot like I do.
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No other compact economy car outside of a Mini Cooper offers as much stick-and-rudder fun as the 3: The steering (hydraulic, with an electric pump) is tack-sharp and precise, with almost no torque steer and a gratifying heft that gathers as you turn the wheel.
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Torque vectoring is permanently active and allows for selective distribution of forces for each individual wheel.
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