However, it is still unclear how much the carmaker would be investing in the project.
At moment, the process is on to amend international law under the Vienna Convention on Road traffic which would remove current blocks on fully autonomous vehicles. The convention, which underpins EU and UK law, says the driver must be in control of the vehicle at all times.
With this new technology, rules are required to be amended.
Volvo has had 50 engineers working with automotive partners such as Ricardo U.K. on the new crash-proof car technology over the last several years.
Already, US internet search engine Google is testing its own prototype of a self-driving car since 2010.
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