Vehicular network became one of the most active and emerging fields of research during last decade. Its use in diversified applications (for example safe driving, congestion avoidance and even entertainment) will soon bring revolutionary changes in transportation system. However, one of the most important features in intelligent transportation system (ITS) is automated traffic signaling and monitoring. In this paper, we investigate these problems towards developing an automated traffic system and design a novel vehicular system architecture using directional antenna. The system follows an addressing scheme for identification of vehicles and their location and stores related information on hierarchically distributed servers. Furthermore, we claim that other applications by vehicular network can also be integrated into the system architecture. Finally, we have concluded our paper focusing on some future directions