The collision was reported about 3:45 a.m. at the intersection of Balboa and Victory boulevards, an LAPD spokesperson said.
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Investigators say a white Corvette was speeding north on Balboa and slammed into a Honda that was heading east on Victory. They are still looking to determine if the Corvette ran a red light at the intersection.
The impact sent the Honda flying into a large sign for the shopping center, leaving it mangled and bent over. The Honda then ricocheted into the intersection and was left in the street as crumpled debris.
The driver of the Honda, a woman in her 40s, died at the scene.
The male driver of the Corvette was brought to a hospital in critical condition and died there. A female passenger in the Corvette was hospitalized and investigators were speaking to her, but did not disclose what she said.
The location is just at the northern edge of the Sepulveda Basin Recreation Area and local residents say they often hear cars speeding on Balboa Boulevard at night. A high school and a bus stop are also near the site of the collision.
"It does not surprise me at all," said Beatriz Orellana, who lives in the neighborhood. "Once 7:00 (p.m.) or 8:00 hits, you start hearing the cars racing. I know it says the speed limit is 40 mph. They're going 60."
There were few people in the area at the time, but one person working early at a doughnut shop in the shopping plaza described the sound of the impact as like an earthquake.
Investigators say there is no indication the Corvette was racing with another vehicle.
"This is a really heavy intersection," said LAPD Sgt. Hector Gutierrez. "At that time we have a lot of citizens that decide, let's see how fast my vehicle goes. Unfortunately this is what happens."
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Video from AIR7 HD showed the Honda overturned onto its roof in the street. The Corvette ended up in the parking lot of an adjacent strip mall. An engine block flew out of one of the vehicles and also landed in the parking lot. A sign for the strip mall was tilted over.
Responding firefighters extricated two people who were initially trapped inside one of the cars.
The intersection of Balboa and Victory was closed as an investigation was conducted at the scene.