A sensing system for a vehicle includes a plurality of sensors disposed at the vehicle. The plurality of sensors includes individual sensors connected to a vehicle network using a daisy chain topology. A control determines an address of the sensors and calibrates the sensors. The control, responsive to determination that an individual sensor is not the last sensor of a daisy chain of sensors, adjusts the internal electrical configuration to provide an open connection for another sensor. The control, responsive to determination that an individual sensor is the last sensor of the daisy chain of sensors, adjusts the internal electrical configuration to provide a termination configuration. The control, responsive to the outputs of the sensors, determines the presence of one or more objects exterior the vehicle and within the field of sensing of at least one of the sensors.