The document discusses different types of differentials used in automobiles. It begins by introducing the basic components and purpose of a differential, which allows the left and right wheels to spin at different speeds during turns. It then describes the key parts of a differential system and how power is transferred. The document explains how an open differential can limit traction in certain conditions, and introduces limited-slip and active differentials as alternatives that can distribute torque more effectively. It concludes by noting some other differential types like locking and automatic torque biasing differentials.