This is a possibly cool idea, though the range and speed claims have always been suspect. Carbon fiber tanks are probably cheaper than high performance batteries but I believe the energy density is much lower. Around 2000 they (Guy Negre and his company MDI) were pushing these as taxis, and supposedly had licensing deals to build them in Mexico.
Like Paul Moller and his Aircars, this looks like one of those perpetual just-around-the corner technologies that always need just a little more investment. Here's an even older article I found on google groups:
http://groups-beta.google.com/group/sci.physics.fusion/browse_frm/thread/2f779a90deca2b60/acab3d24af6d93b4?q=Guy+N%C3%A8gre+1996&_done=%2Fgroups%3Fhl%3Den%26lr%3D%26c2coff%3D1%26q%3DGuy+N%C3%A8gre+1996%26qt_s%3DSearch+Groups%26&_doneTitle=Back+to+Search&&d#acab3d24af6d93b4The Economist. Oct 26, 1996
Car engines - Not all hot air
...
But the most surprising aspect of Mr Negre's invention is that it
does not necessarily need petrol at all. He has found that
forcing a burst of cold compressed air into the combustion
chamber can deliver sufficient power to the piston to drive a
car. While engines running on compressed air are nothing new
the novelty in this case is that cold compressed air at 40
atmospheres of pressure is being added to that chamber when
it has already been charged up withair by the compression
stroke. Since compressing air also heats it the air in the
chamber is at about 400 degrees C and 21 atmospheres of
pressure. A hot gas expanding can provide a lot more useful
mechanical energy than the same quantityof cold gas at the
same pressure. Although less powerful than a petrol model
thezero-emission version of Mr Negre's engine can power a
car in city traffic for one hour on 15 litres of compressed air.
...
The first commercial prototype of Mr Negre's engine
unmemorably named the MDI-Ev3 is currently being tested by
ADMP a small engineering outfit that he hasset up for use in cars
and buses. With the backing of MDI an engine developer
inLuxembourg ADMP hopes to sell a licence for its technology
to a big engine-manufacturer. Public transport should provide a
convenient test-market for the engine and MDI has already
begun discussions with the Parisian transportauthority RATP as
well as with private bus firms to equip urban buses with the
compressed-air engine. A Parisian bus could run an entire day
on 1500 litres of compressed air which could be stored on
board. If Mr Negre's brainchild takes off Parisian smog may
one day be reduced to the fumes of Gaulo+ises.
============
The New York Times
November 24, 2000, Friday, Late Edition - Final
SECTION: Section F; Page 1; Column 1; Automobiles
LENGTH: 1461 words
HEADLINE: Pneumatic Car: Environmental Bonanza or a Lot of Hot Air?
BYLINE: By JIM MOTAVALLI
BODY:
WHEN considering the best power source for 21st-century vehicles, have the experts neglected the vast potential of the air around them? That is the assertion of Guy Negre, a French engineer whose previous experience was in designing high-performance Formula One racing engines for Renault and other teams.
Mr. Negre, who heads Motor Development International, a Luxembourg company also known as M.D.I., is doing more than talking about cars that would run on compressed air. He owns several patents on the technology and plans to start building two-cylinder "zero pollution" vehicles next year in Nice, France. Production is to be added later, he said, in Mexico, South Africa and the United States. But his plan has raised eyebrows among many researchers into alternative vehicles, who remain skeptical that compressed-air cars could offer a long-term solution to problems, like pollution and global warming, posed by internal-combustion engines.
...
Shiva Vencat, who heads M.D.I.'s operation in the United States through Zero Pollution Motors, an entity he solely owns, said the air car would be an "urban vehicle" sold mainly to fleet operators. At 55 m.p.h., he said, the range drops to less than 60 miles. The company is considering adding a small engine solely to heat the air, which, Mr. Vencat said, would potentially double the range.