During normal driving, ESC works in the background, continuously monitoring steering and vehicle direction. ESC compares the driver's intended direction (by measuring steering angle) to the vehicle's actual direction (by measuring lateral acceleration, vehicle rotation (yaw), and individual road wheel speeds).
ESC only intervenes when it detects loss of steering control, i.e. when the vehicle is not going where the driver is steering. This may happen, for example, when skidding during emergency evasive swerves, understeer or oversteer during poorly judged turns on slippery roads, or hydroplaning. ESC calculates (since all states are not readily available, this calculation is actually an "estimation" according to the control terminology) the direction of the skid, and then applies the brakes to individual wheels asymmetrically in order to create torque about the vehicle's vertical axis, opposing the skid and bringing the vehicle back in line with the driver's commanded direction. Additionally, the system may reduce engine power or operate the transmission to slow the vehicle down.
ESC can work on any surface, from dry pavement to frozen lakes. It reacts to and corrects skidding much faster and more effectively than the typical human driver, often before the driver is even aware of any imminent loss of control. In fact, this led to some concern that ESC could allow drivers to become overconfident in their vehicle's handling and/or their own driving skills. For this reason, ESC systems typically inform the driver when they intervene, so that the driver knows that the vehicle's handling limits have been approached. Most activate a dashboard indicator light and/or alert tone; some intentionally allow the vehicle's corrected course to deviate very slightly from the driver-commanded direction, even if it is possible to more precisely match it.
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