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It is the front wheel drive traction control light. When your tires spin on wet roads the traction control helps regain your tires grip on pavement. Find the button and push it. The "trac off" light will go off and it will show "traction active" only when the system is in use. Note that you cant do a burn out with traction control "on". :)

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Q: What does 'trac off' mean for a 99 Pontiac Grand Am?
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