Automatic guided vehicle in the factory has an important role to advance the flexible manufacturing system. In this paper, we propose a novel object-transportation control algorithm of cooperative AGV systems to apply decentralized control to multiple AGV systems. Each AGV system is under nonholonomic constraints and conveys a common object-transportation in a horizontal plain. Moreover it is shown that cooperative robot systems ensure stability and the velocities of augmented systems convergence to a scaled multiple of each desired velocity field for cooperative AGV systems. Finally, the application of proposed virtual passivity-based decentralized control algorithm via system augmentation is applied to trace a circle. Finally, the simulation and experimental results for the object-transportation by two AGV systems illustrates the validity of the proposed virtual-passivity decentralized control algorithm.