Is it possible to control the braking system and speed limiting of a car using a microcontroller? Please explain.
They are being controlled by a microcontroller. Think of ABS for instance. This must be the part of the car where the most time and money was spent during development to get the highest reliability. You don't want to mess with that. Stay away from it.
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There are several kind of breaks, modern cars are hybrid, and they extract kinetic energy and store it in batteries as electricity.
On trains, they have eddy current breakers. So it's quite possible to control the breaking system using micro-controller. http://en.wikipedia.org/wiki/Eddy_current_brake
If you talking about a RC car, then eddy current method is quite easy to implement. Just simply short the motor terminals over a load.