The German company associated with developing the Electronic Stability Control technology first fitted to a production car in 1995 is Bosch.
Bosch and Mercedes-Benz co-developed the system marketed as Elektronisches Stabilitätsprogramm, or ESP. Mercedes-Benz supplied the first production application, the S 600 Coupé, in 1995, while Bosch provided the electronic stability technology. That collaboration is why some accounts describe Mercedes-Benz as the vehicle-system co-developer and Bosch as the technology supplier or developer.
ESC compares the driver’s intended direction, inferred from steering input, with the vehicle’s actual motion using sensors such as wheel-speed, steering-angle, and yaw-rate sensors. If the car begins to understeer or oversteer, the system can brake individual wheels and reduce engine power to help restore the intended path.
The technology is not the same as anti-lock braking or ordinary traction control, although it builds on both. Its importance grew after the 1997 Mercedes A-Class “moose test” controversy, and ESC later became mandatory for new vehicles in several major markets.