Since its introduction in March 1995, the market demand for Vehicle Dynamic Control systems (VDC) has increased rapidly. Some car manufacturers have already announced their plans to introduce VDC on all their models. Particularly for compact and subcompact cars the system price needs to be reduced without sacrificing safety and performance. Originally designed for optimal performance with economically feasible components (sensors, hydraulics and microcontrollers) and using a unified control approach for all vehicle operating situations the system has been extended to include various drive concepts and has continuously been improved regarding performance, safety and cost. This paper describes the progress made in the development of the Bosch VDC system with regard to the design of the hydraulic system, the sensors, the electronic control unit, the control algorithm and safety.