IBM Corp. and French carmaker Peugeot SA are working together on an Internet vehicle diagnostic system that is aimed at helping auto mechanics repair and prevent problems faster, quicker and more accurately, according to an AP report.

The report says that the system, called e-diagnostics, is an evolution of IBM's earlier tele-assistance system in which technicians were connected to live engineers. A service technician connects the vehicle's on-board computer to a central server through cables attached to a telephone line.

The diagnosis is then relayed and step-by-step instructions to repair the problem are displayed on a monitor.

The AP reports says that Peugeot has been testing the system since last summer and expects to begin using it at its European service centers and dealerships in July.

Alan Chakra, global leader service diagnostics and after-sales solutions for IBM, told AP in the report that negotiations are underway with several automakers, including several in the United States, to bring e-diagnostics to North America.