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What is Audi's virtual side mirrors technology?

I've heard about Audi's new e-Tron line offering virtual side mirrors, but what exactly does that mean? How does it differ from traditional side mirrors and how does it work?

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Audi's virtual side mirrors use small cameras and OLED display screens on the inside of the car to replace traditional side mirrors. This technology offers a wider field of view and reduces drag for improved aerodynamics.

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