General Motors and Honda are to work together on next-generation hydrogen fuel-cell technology in what industry watchers say is a response to the sluggish sales of all-electric cars.

According to the announcement in New York, engineers from both companies will research and design hydrogen fuel-cell cars with the aim of moving forward a technology which is enjoying a revival of interest.

Carmakers have been talking about fuel cell cars for decades but commercial viability has been hampered by the high cost and infrastructure problems such as a lack of filling stations.

Vehicles powered by a fuel cell are completely emission-free. They derive their power from a chemical reaction that produces water vapour and they do not need the heavy on-board batteries carried by EVs.

Toyota has notched up volume sales with its petrol-electric Prius hybrid yet sales of all-electric cars have been slow. General Motors has sold only 10,000 of its Volt EV in six months of production compared to overall car sales of 1.4 million units.

“We think by pooling that intellectual property we can move this technology along faster,” said GM Vice Chairman Steve Girsky. He said the infrastructure was a key issue but that costs need to fall in order ensure that a mass-production fuel-cell car becomes feasible.

Germany’s BMW is also working with Toyota on producing an affordable fuel-cell car by 2015 and Daimler, Ford and Nissan have started similar projects.

Dozens of fuel-cell-powered buses are already in operation around the world using technology pioneered by Mercedes-Benz. They are however prohibitively expensive to buy and in most cases need to be heavily subsidised by Governments keen to promote green mobility.

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