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This study explores the use of inter vehicle communication to enhance road safety and traffic management. A vehicle's engine control unit (ECU) manages and controls various sensor signals and determines the output in terms of torque, fuel quantity and actuator positions. The data available in the ECU is however restricted only to that particular vehicle where it was generated. This work presents a scenario where critical data from each vehicle is broadcasted and a dynamic adhoc network of vehicles is formed. The algorithms in the ECU then detect possible collisions, decide which vehicle should take action and alert the driver with the most optimum response. The analysis presented here is based on simulation data. Traffic management is achieved with modules placed along the road, which collect the broadcasted data. Modules, after analyzing traffic density and average speeds, interact with neighboring modules. This traffic information is broadcasted to all vehicles in close proximity to the traffic modules. The vehicle uses this information along with details from the navigation system to reroute the automobile to avoid high traffic areas.