The development of a more realistic simulation environment for VANET is critical in ensuring high performance.This book describes two approaches to improve such Vehicle to Vehicle V2V communication. The first one is based on the development of an already existing approach, the Spatial Channel Model Extended SCME for cellular communication which is a verified, validated and well-established communication channel model. The new developed model, is called Vehicular - Spatial Channel Model Extended V-SCME and can be utilised for V2V communication. V-SCME is a statistical channel model which was specifically developed and configured to satisfy the requirements of the highly dynamic network topology such as V2V communication. V-SCME provides a precise channel coefficients library for vehicle to vehicle communication for use by the research community, so as to reduce the overall simulation time. The second approach is to apply V-BLAST (MIMO) coding which can be implemented with V2V communication and improve its performance over the V-SCME. The V-SCME channel model with V-BLAST coding system was used to improve V2V physical layer performance, which is a novel contribution.