Cano
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- Cephiro
I'd say it was actually quite good in a way; car makers had to be a lot more creative in how they made a car quick and fun to drive without using horsepower as a crutch to simply fall back on. Little things like creating more efficient turbochargers, slight drops in weight, weight distribution, aerodynamic tweaks, changing the throttle response and so on. Stuff like Skyline GT-Rs, STIs, Evos and 3000GTs/GTOs had various bits of tech to basically throw physics out of the window and have the manufacturers stick their middle finger up at the limit. Although lets not beat around the bush here, practically all of the major players back in the 90s were at least firmly in the 300+ BHP range.
It drove development of other things. To be faster than your rivals you needed more and broader torque, to be faster round a track you needed a better chassis, to sell better you needed better fuel economy and to do all three you needed lots of computers.
When they stopped pretending they were not building cars with more than 280PS, you got great handling, fuel efficient cars that also had 500hp. Well, you got the GT-R. We're still waiting for Honda, Mitsubishi and Mazda to respond.
While I totally agree with both, knowing the japanese and their fanboyism for technology and that stuff, specially when all of them were churning out supercar-like stuff like the ones mentioned above, I do think that they would have put all that stuff and 400-500 hp on their cars if that agreement didn't exist. It would have been, as Famine put it, another element to sell better.
And yes, sadly, we're still wating ):