Developed by Ford, the MyKey system will allow parents to control how many people are in the car based on sensors in the seat, the car's top speed, how loud stereo can be and sounds warnings if seatbelts are not being worn.
The system will go on sale late in 2010 initially in a Ford Focus, according to executives from Ford. Described as ideal for parents who are concerned about their kid's welfare the device will allow speed limits to be set at a maximum of 80 kph. It is also set to be a standard feature in other vehicles.
Other options will let parents decide if warning tones should sound if a car goes above a certain speed. The car giant said the system built on the ID chips it already used in car keys to hamper car theft.
According to the BBC Jim Buczkowski, Ford's director of electronic and electrical systems engineering said "It's making use of existing technology, and through the magic of software, we're able to build features on top of the features we already have. Research we've done has shown that speeding is a major factor in teen crashes, especially novice teen drivers so I think a system that tries to correct the speeding is excellent".