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The rear differential transmits torque from the transmission to the rear wheels of the vehicle. The rear differential also allows one wheel to spin faster than the other especially when the vehicle is turning.

The pinion gear, which is driven by the driveline from the transmission, turns the ring gear inside the differential. Attached to the ring gear is a cage containing smaller gears known as the carrier assembly. The two gears attached to the carrier are the planet gears, and the other two gears are attached to the ends of the axles. When the Axles are turning at the same speed, the planet gears remain stationary. When one axle turns faster than the other, the planet's gears rotate.