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What is the function of the BMW M5's Active M Differential?

I recently bought a BMW M5 and I've been curious about the Active M Differential. Can someone explain to me what it does and how it affects the car's performance?

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The Active M Differential is an electronically controlled limited-slip differential that constantly distributes power between the rear wheels for optimal traction and stability. It helps to improve handling and acceleration on both dry and wet roads.

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