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Vehicle position estimation for intelligent vehicles requires not only highly accurate position information but reliable and continuous information provision as well. A low-cost Global Positioning System (GPS) receiver has widely been used for conventional automotive applications, but it does not guarantee accuracy, reliability, or continuity of position data when GPS errors occur. To mitigate GPS errors, numerous Bayesian filters based on sensor fusion algorithms have been studied. The estimation performance of Bayesian filters primarily relies on the choice of process model. For this reason, the change in vehicle dynamics with driving conditions should be addressed in the process model of the Bayesian filters. This paper presents a positioning algorithm based on an interacting multiple model (IMM) filter that integrates low-cost GPS and in-vehicle sensors to adapt the vehicle model to various driving conditions. The model set of the IMM filter is composed of a kinematic vehicle model and a dynamic vehicle model. The algorithm developed in this paper is verified via intensive simulation and evaluated through experimentation with a real-time embedded system. Experimental results show that the performance of the positioning system is accurate and reliable under a wide range of driving conditions.