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The Gerodisc hydro-mechanical limited-slip differential has been successfully developed for a racing car application. This racing application requires that the differential's design be both torque and slip sensitive. This paper discusses the operation principle and general construction of the racing differential as well as the development of the limited-slip differential from the design phase to production. The limited-slip differential (LSD) operates within an existing 8.8″ axle housing. The LSD was designed to meet the high torque requirements of the application without sacrificing either durability or high speed tuning by using high thermal resistant friction material and a bimetal valve which thermally compensates for temperature variation.