The so-called eCall device will automatically alert the nearest emergency centre in the event of a crash using emergency call technology, which will give authorities information such as the exact location and time of the crash and the number of passengers in the vehicle.

Members of the European Parliament in Strasbourg approved the law on Tuesday, meaning car manufacturers such as Volkswagen (>> Volkswagen AG) and Volvo (>> Volvo AB) would have to ensure all passenger cars and light commercial vehicles are fitted with the devices by March 31 2018.

Road accidents killed 25,700 people in the EU last year.

The European Commission, which proposed the law, estimates that emergency response time will halve in the countryside and fall 60 percent in urban areas.

People would also be able to make an eCall by pushing a button inside the car, giving witnesses a chance to report accidents.

The devices will not track vehicles outside emergencies and authorities will not be able to transfer the data to third parties without the explicit consent of the person concerned.

Three years after the launch, the Commission will assess whether eCall devices should also be fitted onto buses, coaches and trucks.

(Reporting by Julia Fioretti; editing by Susan Thomas)

By Julia Fioretti

Stocks treated in this article : Continental AG, Volkswagen AG, Volvo AB