You're correct, but one minor point: SAE is actually an abbreviation for "Society of Automotive Engineers," a standards and certifying body. The difference you

You're correct, but one minor point: SAE is actually an abbreviation for "Society of Automotive Engineers," a standards and certifying body. The difference you are describing is between "gross" horsepower (SAE J1995 spec.), essentially horsepower measured at an unloaded crankshaft and "net" horsepower (SAE 1349 spec.) or the horsepower measured at the wheels.[1] The difference is due to drivetrain losses and power used to drive non-engine components. [1] See http://www.edmunds.com/car-technology/horsepower-gross-vs-real-world.html http://www.edmunds.com/car-technology/horsepower-gross-vs-re...