GM, FedEx to test fuel-cell vehicle on Tokyo streets. (Upfront).

... IN BRIEF: General Motors (GM) and Federal Express (FedEx) announced in December a joint program to advance fuel-cell technology by conducting the first commercial test of a fuelcell vehicle in Tokyo.

FedEx will participate in GM's HydroGen3 fuel-cell testing program for one year by operating the HydroGen3 on its normal delivery schedules in the Tokyo area from June 2003 to June 2004. GM's HydroGen3 is the first fuel-cell vehicle fueled with liquid hydrogen to run on public roads in Japan.

... COMMENTARY: Tokyo is becoming a major international spot for fuel-cell vehicles. Already, five fuel-cell-powered cars hit the road in Tokyo's Kasumigaseki district in December, the first official use of the ceo-friendly cars on public roads. Toyota Motor is leasing four of its FCVH fuel-cell vehicles to four government bodies, while Honda Motor is renting one FCX fuel-cell model to the Cabinet Office. Toyota charges [yen]1.2 million a month for a 30-month lease, while Honda charges [yen]800,000 a month over one year.

Fuel-cell vehicles are one of Japan's "national projects" envisioned by prime minister Junichiro Koizumi. Japanese auto executives have been saying publicly that fuel-cell powered cars won't be a real option for most consumers until 2010 or so. But privately, those same executives have been bearing down on their top engineers to bring out this technology faster. Honda and Toyota are especially eager to stake their claim in the global market for fuel-cell cars, and so far, they've been out in front of other carmakers.