I don't think with the VDC off the traction control is kicking in when the light blinks. With the VDC on, when the light blinks I feel a big loss in power. With VDC off and the light blinking, I feel no loss in power and I can spin the tires all I want. I think it still blinks to let you know traction control would be kicking in if it was enabled. Just what I think, I could be wrong.
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