The objective of this work is the investigation of a new measurement system for automatic recognition of the drive direction and position of moving vehicles. The centre of activity was the development of a self-controlled automotive component which is able to read passive magnetic barcode applied in the road surface. Of prime importance is the independence of the recognition method from external systems (like GPS, induction meander or light barrier), the simplicity of the data processing and the application of minimum amount of instrumentation. The signal data, collected by a fluxgate sensor, is transferred to a special ECU and is analyzed by a new method, called zoom-and-grid. The zoom-and-grid method outputs digital values corresponding to the definition of the magnetic barcode (i.e. 'right', 'wrong') or some positioning value (i.e. 'P14'), which will be applied in the road surface. These values can be used for visualization, for triggering of electronic signals or they can be wirelessly transferred to a host traffic regulation system. The transfer of the output data can be accomplished via existing wireless infrastructure like GSM/GPRS/UMTS or in a more dedicated way with shorter reaction times via specific wireless roadside telematic networks providing seamless connection to (fiberoptical-based) broadband access. On-line processing of actual car position data transmitted via high speed network infrastructure will enable to calculate traffic parameters like speed, drive direction, traffic density or crash scenarios and thus will contribute traffic safety. The stability and functionality of the zoom-and-grid method were simulated and strenuously tested in a laboratory, on a proving ground and under real conditions in the city and on the highway. The main advantage of the system is that it is an independent part of vehicle's electronics with an own local intelligence and it can be applied in highways, cities, parking places or production halls.