SHANGHAI, Nov. 6 (AP) -- General Motors CEO Rick Wagoner and Shanghai Mayor Han Zheng took a spin in the company's hydrogen fuel cell-powered Sequel on Monday in an event meant to showcase GM's progress in bringing its newest technology to market.

The hydrogen-powered Sequel, which looks like a minivan and has a range of 480 kilometers (300 miles), reflects GM's willingness to cater to China's appetite for advanced technology as it builds up its auto sector.

"We believe fuel cell vehicles offer the best long-term solution for meeting the world's growing demand for automobiles in an economically and environmentally sustainable manner," Wagoner told reporters.

"Sequel represents the most production-ready fuel cell vehicle available today," he said. Still, the vehicle is far from ready for commercial use, Wagoner said.

Nearly all the world's major automakers are testing hydrogen-powered vehicles, with some in use by government workers.

The pollution-free technology holds the potential of zero emissions and a sustainable source of energy produced when hydrogen and oxygen are mixed. Experts say they could begin arriving in showrooms by 2020, or perhaps earlier.

But many obstacles exist, including the high cost, relatively short range and a lack of fueling stations.

GM has managed to reduce costs for making the Sequel by 12 times, but still needs to reduce them by seven times more to make it competitive, Wagoner said.

And automakers need help from governments in developing the infrastructure for hydrogen fueling, he said.

"Developing new technologies is really a team sport that requires business and governments to work together," he said. "It's doable, it's not that expensive, but it's going to require some work."

Meanwhile, GM said it plans to launch production of a hybrid vehicle, which uses gas and electricity, in Shanghai in 2008. The car will be produced by Shanghai GM, General Motor Corp.'s joint venture with Shanghai Automotive Industrial Corp.