The manufacturer is aiming to begin testing at Volvo's test course in Sweden in late 2010, with a prototype system launched in 2011 and private motorists able to use it from around 2018.
Jonas Ekmark, a safety researcher at Volvo cars, told the Daily Mail: "It would be the same as sitting on a bus or a train, with the big difference that when you come to your exit you take over and you go directly to your destination without having to switch vehicles.
"The professional driver leading the convoy will be responsible for the safety of those behind him. But those joining the convoy will be taking only the same sort of risks that those jumping on a bus or tube are taking."
The technology is an extension of laser systems already used in a number of Volvo models, including an automatic braking system developed to prevent low-speed rear-end collisions.