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TACC failed to brake at stop, nearly accident.

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Looks to me like TACC didn't stop because it didn't switch radar lock from one vehicle to the other when the first vehicle turned off, however Emergency braking did work.

I know you state that you would have hit the vehicle in front, however in the video it appears that the emergency braking managed to stop you just short (though I'll admit it wasn't a comfortable distance)

Seems to me that TACC could switch vehicle radar lock faster, but that emergency braking worked properly.

^ This.

Having driven a couple thousand miles with TACC now, I know how it behaves pretty well.

The TACC was definitely locked on to the Prius. When the Prius started to go to the right, it continued to lock on. Eventually when the car realized you weren't following the Prius anymore, it detached from it. The TACC seems to have a delay in detecting a completely stopped car/object/etc, however, so it probably disengaged TACC and back to normal CC for a brief moment, then detected the white car, and engaged brakes. I hear the collision alert in the video.

Basically, with the TACC, just have to pay attention. I don't use it in local stops and such like that anymore because it just isn't as efficient as driving myself. (It uses friction brakes often, I use regen almost exclusively.) If a car moves out of your lane it takes TACC nearly a second to figure this out. Something to keep in mind.

Also, I agree with green1, I don't think you would have hit the other vehicle. Close, but probably not.