It's a neat proof of concept, and I'm impressed at how well it handles with just keyboard controls. Being able to switch between front/rear/all wheel drive on the fly is a nice touch too, they all feel quite proper and not just "now this end has no grip".
Add in some gamepad/wheel support and some different power and acceleration presets to simulate different types of vehicles, and this would make a pretty good little arcade rallying game, I think.