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Vehicle electronics and sensor systems have become indispensable parts in providing safety, comfort, personal communication mobility and many other advanced functions in today's vehicles. As a result, reliability requirements for these critical parts have become extremely important. To meet these requirements, more advanced technologies and tools for degradation monitoring and failure prevention are needed. Currently, the development of diagnostics and prognostics techniques, which employ accurate degradation quantification by appropriate sensor selection, location decision, and feature selection and feature fusion, still remains a vital and unsolved issue. This paper addresses several realistic concerns of failure prevention in vehicle electronics and sensor systems. A unified monitoring and prognostics approach that prevents failures by analyzing degradation features, driven by physics-of-failure, is suggested as a general framework to overcome the unsolved challenge.