quattro is a permanent 'full fat' 4WD system. It's based on locking diffs (later torque sensing diffs). Audi's used it becuase their engine configuration was/is longditudinally mounted.
You can't use this permanent system wth transverse mounted powertrain, so the Haldex system is used. Which uses a clutching system to mimic a centre diff. If you are running permanently like this the clutches burn out.