Daimler AG (DAI) Chief Executive Dieter Zetsche confirmed Thursday that hydrogen-powered cars should be ready for large-scale production by 2015, just after several major automakers pledged to ramp up efforts to commercialize the technology for emission-free driving.

"We will bring costs to a competitive level, prepare large-scale production and of course continue to work on the technology," Zetsche said at a press briefing in Berlin, according to a prepared statement.

At the briefing, representatives of several utilities, gas and energy companies such as Linde AG (LIN.XE), Vattenfall Group and OMV AG (OMV.VI) signed a memorandum of understanding to establish a network of hydrogen fueling stations in Germany as part of a joint initiative.

Ensuring that drivers can fill up their vehicles wherever they go is a precondition for a broader use of the technology.

But hydrogen technology still faces some prominent critics. In July, U.S. Energy Secretary Steven Chu said he wanted to axe funding for research and development on cars that run on hydrogen fuel cells, partly because they would require the creation of a network of fueling stations.

The U.S. government has spent roughly $1.5 billion since 2001 on hydrogen fuel-cell research. Chu argued that improved internal-combustion engines and plug-in electric vehicles were more realistic technologies for cutting oil consumption over the next 20 to 30 years.

However, Zetsche said General Motors Co., Adam Opel GmbH, Honda Motor Co. (7267.TO), Toyota Motor Corp. (7203.TO), Nissan Motor Co. (7201.TO), Renault SA (RNO.FR), Ford Motor Co. (F) and Hyundai-Kia (005380.SE) will push hydrogen technology forward, in addition to Daimler.

He said from 2015 on "several hundred thousand electric cars with fuel cells will be produced," noting that Daimler will present a hydrogen fuel cell version of its compact Mercedes-Benz B-Class model at the Frankfurt auto show next week.

Electric cars and alternative drivetrains are expected to be in the spotlight in Frankfurt as automakers feel rising pressure to make their cars more environmentally friendly amid tightening emission regulations worldwide and a growing awareness among consumers for green issues.

According to previous statements, Daimler is starting small-scale series production of the hydrogen-powered B-Class model this year. Production is expected to be around 200 cars in 2009 and pave the way for large-scale production from 2015 on.

Daimler executive board member Thomas Weber told Dow Jones in a recent interview that Daimler has so far invested around EUR1 billion in research and development costs for fuel-cell technology and pledged to keep up investing in this field.

He said by 2015 hydrogen-powered cars would have to be cost-efficient enough to attract a broader range of customers. "Customers will only buy these cars if they're just about a few thousand euros more expensive than cars with a conventional engine, but not more," Weber said.

Company Web site: www.daimler.com

-By Christoph Rauwald, Dow Jones Newswires; +49 69 29 725 512; christoph.rauwald@dowjones.com

(Stephen Power of The Wall Street Journal in Washington contributed to this article.)