Originally Posted by S-Dot
That's what understeer is - the tires slipping on the pavement. If they're not slipping, it's not understeering; it's just steering. When traction is lost, the system detects the difference in the rotational speed of the wheels and redirects power accordingly.
This is only true for a spherical car in a vacuum. If it applied to real cars just like you're describing, all AWD cars would have perfect neutral handling. For some reason, however, throughout many generations, a 3 series could always turn better than an A4. Do you have a good explanation for this?