New York--

General Motors (GM) wants to see how well hydrogen-powered fuel cells work in cars and wants consumers to be the guinea pigs.

This week, GM began its initiative, dubbed “Project Driveway,” in which GM is letting customers in Los Angeles, New York City and Washington, D.C., test out Chevrolet fuel-cell electronic cars for three months and then report about their experiences with the cars. The findings will be used for GM’s advancement of the burgeoning technology.

Two years ago, GM announced its commitment to integrating fuel cells, and this is the largest market test, said the company, noting that GM is aiming to get Chevrolet fuel cell electronic cars into the hands of more than a hundred  people.

GM’s push to find viable alternative technology for cars comes at a time when Japanese competitor Toyota (TM) has been successful in selling hybrid vehicles. It also comes against a backdrop of slowing automobile sales and a slackening economy.

When sales figures come out, Toyota may end up in the number one position for 2007, pushing GM out for the first time in 76 years. This past summer, GM bought a 20% stake in Quantum Technologies, an Irvine, Calif., fuel-cell technology company, underscoring its belief in the technology.

Fuel cells are devices that produce electricity by combining a fuel with oxygen. They don’t rely on gasoline, which would help consumers save cash since oil prices recently hit an all time high.

There is a debate going on over whether fuel cells will emerge as the technology for automakers. Still analyst said it’s a smart move for GM to test all different types of alternative technologies for vehicles.

“You don’t want to put all your proverbial eggs in one proverbial basket,’’ said Kevin Tynan, an analyst at Buckingham Research. “I’m not sold that this technology will ultimately survive…but even if it doesn’t  there’s enough to learn from rolling out a program like this.”

By putting the cars in the hands of consumers GM will get the most honest feedback, said the analyst.
“Like any company you have 'yes people' and maybe they are not as tapped in to what consumers want,’’ said Tynan. He pointed to the failure of the Ford Edsel, which was introduced in the late 1950’s by a Ford family member and is viewed as the automobile industry’s biggest failure.

Currently GM is giving three to four drivers in each market a Chevrolet Equinox Fuel Cell electric vehicle to test out for three months. The company chose the three cities because they wanted areas that had different weather patterns and had the infrastructure in place to fuel the cars. GM installed 10 temporary refueling stations where the customers get fuel for free.

While GM is lending the cars to business clients, celebrities, media personalities and public policy makers, it’s also giving some to every day people. The feedback from the market test will be used to improve the technology.

“Drivers will provide regular, candid feedback about their use of the vehicle in their daily lives, the vehicle’s performance and their personal preferences, which is key in defining our product and market introduction plans for fuel cell electric vehicles,” said Ed Peper, general manager at GM, in a statement.  The market test will go on until the middle of 2010 at which point the company will assess the finding.

GM isn’t the only vehicle maker to throw its weight behind fuel cells. According to Fuel Cells 2000, a group created to promote the use of fuel cells, by around 2010 car makers will have the ability to mass produce cars using fuel cells.  The group said DaimlerChrysler, GM, Ford (F), Toyota, Honda and Nissan are targeting 2010 as the year of full commercialization of fuel cell vehicles.