The purpose of this study was to examine the effects of vehicle automation and automation failures on driving performance. Previous studies have revealed problems with driving performance in situations with automation failures and attributed this to drivers being out-of-the-loop. It was therefore hypothesized that driving performance is safer with lower than with higher levels of automation. Furthermore, it was hypothesized that driving performance would be affected by the extent of the automation failure. A moving base driving simulator was used. The design contained semi-automated and highly automated driving combined with complete, severe, and moderate deceleration failures. In total the study involved 36 participants. The results indicate that driving performance degrades when the level of automation increases. Furthermore, it is indicated that car drivers are worse at handling complete than partial deceleration failures.