Automated vehicle control systems is a key technology for Intelligent Vebicle Highway Systems (IVHSs). A modelbased combined longitudinal and lateral vehicle control algorithm that encompasses a lateral vetocity observer is presented in this paper for WHSs applications. Closed-loop stability issues are analyzed using a Lyapunov-based method. The combined controllerobserver scheme can guarantee uniform ultimate bounds (UUB) of controller errors and observer estimation emr. Analysis, design, and simulation testing presented are based on 3 DOF complex dynamic model of a FWSlFWD passenger wagon.