CARMAKER BMW and German tyre and component supplier Continental are working on a driver assistance system which they describe as a "co-pilot" for motorway journeys.
The aim is to have two prototype versions installed in vehicles and ready for extensive testing by the end of 2014, Conti announced.
Trials using the technology are due to be carried out on "German and other European motorway stretches".
Scientists hope the field tests will help them fine-tune the system.
It will use a battery of sensors to "read" the road ahead while constantly monitoring the test car's position.
Hannover-based Conti plans to invest more than 100 million euros ($A126.18 million) in developing the system.
"Together with the BMW Group we will devise an overall technical concept which will lead to an affordable, highly-automated form of motorway driving," announced Conti head Elmar Degenhart.
The programme will run until 2020 with the aim of devising a whole series of automated driver functions.
The cooperation deal with BMW was inked at the beginning of January.
The news comes hard on the heels of an announcement by Continental that it has set up a development centre dedicated to driver assistance systems.
Board chief Ralf Cramer aims to ramp up turnover in the sector to a billion euros over the next five years.
Continental is currently working with Daimler on a stereo camera which would alert the driver to pedestrians, enabling evasive action to be taken.
