This study proposes a two-layer hierarchical control system that integrates active front wheel steering and four wheel braking torque control to improve vehicle handling performance and stability. The first layer is a robust model matching controller (R-MMC) based on linear matrix inequalities (LMIs), which optimizes an active front steering angle compensation and a desired yaw moment control, and calculates reference wheel slip for the target wheel according to the desired yaw moment. The second layer is a moving sliding mode controller (MSMC) that can track the reference wheel slip in a predetermined time by commanding proper braking torque on the target wheel to achieve the desired yaw moment. Since vehicle sideslip angle measurement is difficult to achieve in practice, a sliding mode observer (SMO) that requires only vehicle yaw rate as the measured input is also developed in this study. The performance and robustness of the SMO and the integrated control system are demonstrated through comprehensive computer simulations. Simulation results reveal the satisfactory tracking ability of the SMO, and the superior improved vehicle handling performance, stability and robustness of the integrated control vehicle.