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How does the Quattro all-wheel-drive system in the Audi A3 work?

I've heard great things about Audi's Quattro AWD system, but I'm not sure how it actually works and why it's beneficial. Can you give me a technical explanation?

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The Quattro AWD system in the Audi A3 uses a center differential to distribute power between the front and rear axles, allowing for better traction and handling on all types of road conditions. It constantly monitors driving conditions and can send up to 88% of power to one axle if needed.

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