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Electric power steering (EPS or EPAS) uses an electric motor to assist the driver of a vehicle. Sensors detect the position and torque of the steering column, and a computer module applies assistive torque via the motor, which connects to either the steering gear or steering column. This allows varying amounts of assistance to be applied depending on driving conditions. Engineers can therefore tailor steering-gear response to variable-rate and variable-damping suspension systems, optimizing ride, handling, and steering for each vehicle. On Fiat group cars the amount of assistance can be regulated using a button named "CITY" that switches between two different assist curves, while most other EPS systems have variable assist. These give more assistance as the vehicle slows down, and less at faster speeds. In the event of component failure that fails to provide assistance, a mechanical linkage such as a rack and pinion serves as a back-up in a manner similar to that of hydraulic systems.
Electric systems have an advantage in fuel efficiency because there is no belt-driven hydraulic pump constantly running, whether assistance is required or not, and this is a major reason for their introduction. Another major advantage is the elimination of a belt-driven engine accessory, and several high-pressure hydraulic hoses between the hydraulic pump, mounted on the engine, and the steering gear, mounted on the chassis. This greatly simplifies manufacturing and maintenance. By incorporating electronic stability control electric power steering systems can instantly vary torque assist levels to aid the driver in corrective maneuvers.
The first electric power steering system appeared on the Suzuki Cervo in 1988. Today a number of manufacturers use electric power steering.

From Wiki.