Blur's out on show on the floor at E3 and GameSpot has posted up some info from their experience playing the game. The site states that damage can be quite extensive and change the way you have to play the game in order to get sorted out. From the piece:
"Panels were deforming, doors were swinging open, bumpers were hanging off, and black smoke was pouring out from under the hoods–at least until those of us playing realized that there were repair stations dotted around each circuit that, more often than not, could only be driven through if we chose to ignore power-ups or shorter routes to aim for them."
Sounds awesome and it will be, coming from Bizarre Creations. The game should arrive later this year and will support 20 player online racers, 4 player split-screen and 100 events over 14 locations.