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In page Horsepower:

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In Europe, the DIN 70020 standard tests the engine fitted with all ancillaries and the exhaust system as used in the car. The older American standard (SAE gross horsepower, referred to as bhp) used an engine without alternator, water pump, and other auxiliary components such as power steering pump, muffled exhaust system, etc., so the figures were higher than the European figures for the same engine. The newer American standard (referred to as SAE net horsepower) tests an engine with all the auxiliary components (see "Engine power test standards" below).[citation needed]