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This paper deals with environment perception for automobile applications. Environment perception comprises measuring the surrounding field with onboard sensors such as cameras, radar, lidars, etc., and signal processing to extract relevant information for the planned safety or assistance function. Relevant information is primarily supplied using two well-known methods, namely, object based and grid based. In the introduction, we discuss the advantages and disadvantages of the two methods and subsequently present an approach that combines the two methods to achieve better results. The first part outlines how measurements from stereo sensors can be mapped onto an occupancy grid using an appropriate inverse sensor model. We employ the Dempster-Shafer theory to describe the occupancy grid, which has certain advantages over Bayes' theorem. Furthermore, we generate clusters of grid cells that potentially belong to separate obstacles in the field. These clusters serve as input for an object-tracking framework implemented with an interacting multiple-model estimator. Thereby, moving objects in the field can be identified, and this, in turn, helps update the occupancy grid more effectively. The first experimental results are illustrated, and the next possible research intentions are also discussed.