This is a typical example of how urban legends are born, and can be spread by uneducated journalists. However, it is not a typical hoax since the company Genepax actually exists. But cars running on water don't exist and can not exist. Water is not a fuel. Genepax's car runs on hydrogen, not on water. The hydrogen is used by a fuel cell to generate electricity, producing water as a by-product. The hydrogen is produced from a chemical reaction between water and a metallic material, which is oxidized in the process. The global balance of water is zero. As much water is produced from the fuel cell as it is used by the oxidation reaction. In this process, water is nothing more than a catalyst, definitely not a fuel! The real fuel here is the metallic material which oxidation allows the production of hydrogen. After this material is completely oxidized, the car stops, no matter how much water you add. The car needs a continuous supply of this metallic material in order to keep running.
Original video: http://cosmos.bcst.yahoo.com/up/player/popup/?rn=3906861&cl=8304856&ch=4226714&src=news
Follow-up :
http://techon.nikkeibp.co.jp/english/NEWS_EN/20080616/153301/
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