A new Fuzzy sliding mode controller is proposed to improve the cornering performance of the four wheel hybrid vehicles. The Fuzzy sliding mode control is applied for the control of rear motor and EHB (Electro-Hydraulic Brake) to improve the cornering performance. The modeling of the automobile is simplified that each of the two wheels is modeled as two degrees of freedom object and the friction coefficient between the wheel and the ground is assumed to be constant. The output of the Fuzzy sliding mode algorithm is the direct yaw moment for the rear wheels, which compensates for the slip angle. Through the simulations using ADAMS and MATLAB Simulink, the cornering performance of the proposed algorithm is compared to the conventional PID to show the superiority of the proposed algorithm. In the simulation experiments, the J-Turn and single lane change are used for each of the Fuzzy sliding mode algorithm and PID controller with the optimal gains which are tuned empirically.