XDS is an advanced electronic differential lock, linked to a sophisticated Electronic Stabilisation Programme (ESP) system. We designed it to maximise road holding and improve responses, especially when cornering. In moments of fast cornering XDS gives out exactly the right amount of power, providing pressure on the inside wheel to prevent wheel spinning. The result is better traction and a reduction of any tendency to under steer. You'll experience a more agile, precise and calm driving performance with better traction out of bends. In other words, you can enjoy sporty driving in your Volkswagen, knowing you have a reassuringly higher level of safety.
XDS is not physical at all, sorry guys. It is nothing more than programming. The GTI has an open differential just as the TDI does.
XDS is just a fancy programming term for brake vectoring... It used the brakes to control wheel speed and allow for better traction. The MKVII GTI is the first one ever made to receive an actual mechanical LSD-type device.
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