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The traffic data collection system for floating car is composed of two important parts that are the car equipment and the monitoring system in the center. The hardware of car equipment is composed of ARM board, GPS module, GPRS communication module, memory card, power, USB interface, display interface, audio interface and so on. In the software system of car equipment, the methods for receiving GPS data and connecting GPRS network are discussed. In order to improve the monitoring precision in the center, the map-matching algorithm based on the D-S evidence reasoning theory is used to correct the error of GPS data. The practical applications show that the system design methods are valid.