ANN ARBOR, Mich. -- The USDOT has announced that the University of Michigan will conduct a road safety field trial of "connected vehicle technology" that allows vehicles to "see" and "talk" to each other through wireless communication systems in real time.

USDOT researchers have high hopes for the technology.

"This test will be an important step towards the U.S. Department of Transportations top priority -- a safer transportation system," said Peter Appel, administrator of the USDOT Research and Innovative Technology Administration.

"Technology is an investment in the future, and will allow us to learn how drivers use electronic alerts to avoid crashes in a real-world environment," Appel noted.

During the pilot test, drivers will be alerted to impending dangers so they can take action to avoid crashes. USDOT will collect data from the vehicles to understand how different types of motorists respond to safety messages in the real world.

The pilot testing will include the installation of wireless devices in up to 3,000 vehicles, including trucks, cars and buses, in one location to evaluate the effectiveness of connected vehicle technology to prevent crashes.

It will take place on the streets and highways of Ann Arbor, from August 2012, to August 2013.

"We envision connected vehicle technology as a platform to save many lives on Americas roads, and foster innovations weve yet to imagine -- a game-changer for vehicle safety," said National Highway Traffic Safety Administration Administrator David Strickland.

"When completed, the pilot test will demonstrate first-hand how connected vehicles communicate in the real world, bringing us a step closer to what could be the next major safety breakthrough."

The Connected Vehicle Safety Pilot research program was created to collect data for NHTSA to make a decision about use of the technology that is based on reliable, scientific information.

NHTSA's decision on the future of connected vehicle technology is expected to be made in 2013 for light vehicles and in 2014 for heavy vehicles.

The vision for "V2V" technology is that eventually, each vehicle on the roadway (automobiles, trucks, buses, motorcoaches and motorcycles) will be able to communicate with other vehicles and that this data and communications will support a new generation of active safety applications and safety systems.

USDOT predicts that the V2V communications will enable active safety systems that can assist drivers in preventing 76 percent of highway crashes.