Forza 5 online multiplayer traction loss

Hi Guys and gals.
In Forza 5 online multiplayer while in a lobby with others. While driving I notice a heavy loss of overall car traction that is not happening when drivng with the AI.
The effect is similar to driving on black ice or for the lack of a better word - like driving with completely worn out tires. Doing a pit stop does not fix the issue.
Due to this I must brake much too early - the car is very unstable upon acceleration or braking. I loose about five to ten seconds per lap due to this problem.
I race with the Thrustmaster TX wheel and I notice that the Force Feedback effects are much less during this issue
I race with no assists and again this is only evident during online multiplayer lobbies
I have a Fibre optic 25mb internet connection with no visible lag in game.
Has anyone ever had this problem.

There is another thread about the same topic.

Thanks - could you post a link for that thread as I have not been able to find it so far.

Icy Road Physics is the threads title. Not sure how to post links but it is a common thread in these forums.