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This paper presents a nonlinear control approach to achieve good performances in vehicle path following and collision avoidance when the vehicle is driving under cruise highway conditions. Nonlinear model predictive control (NLMPC) is adopted to achieve online trajectory control based on a simplified vehicle model. GMRES/Continuation algorithm is used to solve the online optimization problem. Simulations show that the proposed controller is capable of tracking the desired path as well as avoiding the obstacles.