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ON THE basis of laboratory and field tests of passenger-car and light-truck rear axles, the authors conclude: 1. The capacity of present axles can be increased, without increasing axle size, when greater load-carrying antiwear and antiscore lubricants are available. 2. Gear noise will always be a major problem because axle gears are operating at varying speeds and loads whenever a car is in motion. Many gear noise problems can be overcome by proper tooth development and by testing in the actual car model under which the axle will be used. 3. The only reliable basis for torque-capacity rating is the tractive effort (wheel-slip torque). 4. The limited-slip type of differential will eventually become standard equipment on all passenger cars, if only to improve car handling and stability during high-speed driving under varying traction conditions.