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Why does the Audi A2 have a rear-mounted engine?

I've noticed that unlike most cars, the Audi A2 has its engine located in the back. Why is this design choice made and what are the advantages and disadvantages?

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The Audi A2 has a rear-mounted engine for better weight distribution, allowing for improved handling and traction on the road. However, this can also increase the risk of oversteer in certain situations. In addition, this design allows for more space in the front of the vehicle for storage and increased cabin room.

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