This paper describes the design of a sliding mode controller to control wheel slip. A yaw motion controller (YMC), which uses a PID control method, is also proposed for controlling the brake pressure of the rear and inner wheels to enhance lateral stability. It induces the yaw rate to track the reference yaw rate, and it reduces a slip angle on a slippery road. A nonlinear observer is also developed to estimate the vehicle variables difficult to measure directly. The braking and steering performances of the anti-lock brake system (ABS) and YMC are evaluated for various driving conditions, including straight, J-turn, and sinusoidal maneuvers. The simulation results show that developed ABS reduces the stopping distance and increases the longitudinal stability. The observer estimates velocity, slip angle, and yaw rate very well. The results also reveal that the YMC improves vehicle lateral stability and controllability when various steering inputs are applied. In addition, the YMC enhances the vehicle safety on a split-$mu$ road.