It is suggested that the emergency call (e-call) technology could save up to 2,000 lives every year and is part of the EU's e-Safety initiative, using technology to save lives.
Information and society and media commissioner Viviane Reding said: 'With this new technology, your car could save your life. Advanced information and communication technologies have great potential to improve road safety in Europe.'
In the event of an accident, the 'e-call technology' will contact the emergency services and inform them of the vehicle's position.
The system can be triggered automatically or manually and the aim of the service is to 'dramatically' cut emergency response times by providing accurate location information.