
If it flashes up then the traction control is working and being activated.
If the light stays on then there is a fault with the traction control system.
If the car senses the wheels losing grip then the TC will activate.
It will also activate if it senses any sudden drop in G force.
This can happen over speed bumps, on loose gravel, through spirited
acceleration, exuberant corner taking, driving on ice or mud etc.
If you normally drive like an idiot then see above but if you are getting the TC light flashing when
you are driving sensibly then the fault usually lies with the rear reluctor rings. These have a
tendency to split which gives an incorrect reading and the car believes it is skidding.
Take a look
The other traction control sensor is the lateral movement (or G-force) sensor.
On the 600cc fortwo it is located underneath the car and on the 700cc Fortwo
it is underneath the carpet under the nearside seat.
See
If the yellow exclamation comes on and stays on, there's a chance you'll lose power too.
Check the rear reluctor rings. If it has cracked and fallen off, it will bring up an error.
This is the most common cause for the light to be on.
However, 2 other options that will bring on the light and reduce power are a faulty yaw
sensor (lateral movement sensor) or a faultyly or poorly aligned steering angle sensor.
MB Star diagnostics should tell you what fault is causing the error light and loss of power.