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Like Charlie said, those VWs need to be 'slammed' with high spring rates and probably high rebounds...
So why do they do it? Well the lower CG (center gravity) for the car, the better. Overall handling improves. As you can see the car is running alot of negative camber to be 'dumped' that low, which eats tires but improves turn in.
Plus the race tracks over in Europe are mostly smooth so they can do that with out ruining their set up.
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