General Motors Corp. (GM) will on Tuesday make another push into the realm of alternative vehicle technology through a joint venture with Segway Inc. to produce a two-wheeled upright personal transporter.

The auto maker is targeting a 2012 launch for its electric-powered PUMA transporter, which would also employ wireless technology to allow users to navigate in urban areas and avoid traffic congestion.

However, GM faces a crowded field of contenders in the alternative vehicle space which, like Segway's iconic but commercially-unsuccessful people mover, have to overcome the challenges of cost, convenience and public indifference.

With a clock running down to a June 1 deadline that could push the company into bankruptcy protection, GM is using the unveiling to try and demonstrate that it retains prowess in new vehicle development having already seen its much-hyped Volt electric car described as unviable by the U.S. auto task force. A prototype of the PUMA - which stands for Personal Urban Mobility and Accessibility - will take to the streets of Manhattan this week during the New York auto show.

"Imagine small, nimble electric vehicles that know where other moving objects are and avoid running into them," said Larry Burns, GM's vice president of research, development, and strategic planning, in a statement.

The Segway Personal Transporter launched in 2002 failed to meet lofty sales goals and, despite a cult following in the technology sector, has languished as a novelty for tour groups, police forces and shopping mall security staff.

GM has adapted the original design, adding an enclosed cabin and more powerful motor delivering a top speed of 35 miles-per-hour in a bid to attract a more mainstream customer base. The Puma would run on lithium-ion batteries with a range of about 35 miles.

GM and Segway won't disclose the Puma's likely selling price, if launched commercially. However, he said the cost of acquiring and running a Puma would be one-third to one-quarter that of a traditional vehicle.

Segway Chief Executive Jim Norrod said the PUMA will target fast-growing urban centers in developing nations, where congestion and pollution are major concerns.

"There are cities the size of Chicago popping up in China, and they're saying 'We must resolve this issue of congestion,'" he said. Nerrod said the company pitched the idea of a car-like Segway to Burns and former GM Chief Executive Rick Wagoner a year and a half ago.

Segway will provide the batteries and drive system, while GM will design the body and provide communications technology.

By Sharon Terlep, Dow Jones Newswires