They have used radar, sonar and infrared sensors along with two video cameras to help the vehicle "see" the road ahead.
This enables the car to react much more quickly than the driver, CBS News reported.
However, cars with collision-avoidance technology are going mainstream.
Dominick Infante from Subaru said that the technology, which enables the system to hit the brakes if the driver doesn't do, has been common in Japan for almost a decade and its new system may soon be standard equipment in the United States too.
Auto Tech journalist Doug Newcomb said that with so many distractions on the road, drivers become complacent and the whole idea behind the technology is to look out for them when they're not paying attention.