The project is a collective effort funded by the European Commission, and led by British company Ricardo which develops engines, transmissions, and vehicles systems among other things. Chief among the consortium’s participants is Swedish auto manufacturer Volvo.
Utilizing Volvo’s own automobiles, the project works by stringing together a group of cars in order to form a road train. This train (or caravan if you prefer) allows a group of cars to follow one another along any road autonomously. Guided by a lead truck driven by a professional driver, the group of autonomous autos can communicate wirelessly via advanced software, cameras, laser sensors, radar, and GPS-based technology in order to mimic the lead truck’s driving behavior. The drivers turn, the following cars turn. The driver slows down, the following cars slow down. All while maintaining appropriate distance and speed…Other than looking rather impressive, what’s the point? Well, not only is autonomous driving insanely awesome – representing the real-life fulfillment of one of our most beloved science fiction technologies — in this scenario it also happens to be incredibly fuel efficient thanks to the road train’s persistent drag reduction while along its route. Early estimates indicate as much as 20 percent more efficient when it comes to reducing fuel
Here is an animation: