This story reminds me of other technologies banned from racing because they were too good and made the competition noncompetitive.
Porsche goes green...100 years ago - Wheel hub motors (2) - CNNMoney.com
Quote:
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One racing version, created in 1900 and capable of a top speed of 37 miles per hour, had electric motors in all four wheels, allowing Porsche Cars to claim that its founder created the first all-wheel-drive vehicle.
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The article above is rather brief, but there was a book in college I read twice which had photos of this car and the full story behind it.
You have to recall that the race tracks back then were the city streets and country roads, both often just trenched mud pits with a few rocks tossed in for laughs. 4WD was a huge advantage back then, and hybrid electric often more reliable than ICE alone.