GM to mass-produce fuel-cell cars in 2008

NEW YORK, July 11 Reuteurs reported that General Motors Corp plans to test an eco-friendly fuel cell car in Japan by the end of this year and mass-produce such cars starting in 2008, the Nihon Keizai Shimbun (Nikkei) said.

The world's largest automaker, which sees Japan as a major market for next-generation vehicles, will be the second foreign automaker to carry out such tests in Japan following Germany's DaimlerChrysler AG, the paper's Friday online edition said.

GM officials were not immediately available to comment.

The giant automaker, which has been heavily investing in the technology, has said the first fuel cell-powered GM car for the retail market will not arrive until 2010.

GM expects, however, to have market-ready fuel cells by mid-decade, with first applications outside the automotive industry, the paper said.

Fuel cells use an electrochemical process to create electricity by mixing hydrogen and oxygen, with distilled water as the only byproduct.

Japanese automakers like Toyota Motor Corp.and Honda Motor Co. are set to release such vehicles by the end of this year, and Mazda Motor Corp.has already carried out testing.

GM plans to use the Zafira minivan of its German unit Adam Opel for the fuel-cell tests, the paper said.