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its the traction control system switch. when the car senses traction loss, it literaly takes the pedal from you and deaccelerates the engine to allow the car to regain traction. use it bad weather. personaly, i just turn it off. i want complete control of my car.
What he said. The purpose is so you don't break the rear tires loose under bad road conditions and end up facing the way you came, with an 'oh ****!' look on your face and an uncertain next few minutes. It's for wet, frosty, slick roads. If the wheels spin, it works with the ABS to stop the wheel spin. You will feel feedback in your gas pedal, it will kick back at you so you know you are losing traction.
If you are at the track or any other time that you want to be able to romp on it, you should turn it off. You can get a switch that reverses the default setting so that the TCS is always off unless you decide to turn it on. That's how I roll.
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