There are Hydrogen generators and they do work. Honda is proposing a home hydrogen generator that will power your home and you can fill you car up off the same unit.
I suspect the unit you are talking about is a hydrogen generator that mounts on the vehiicle and extracts hydrogen from water to power the vehicle. There is such a device and the inventor claims to have powered a vehicle with his hydrogen generator which uses an exlectolysis process to separate the hydrogen and oxygen in the water.
This process has been done before but the question has always been "Can it produce enough to power an automobile engine? It is reported that the vehicle does require some amount of gasoline to operate, but it might be as little as 7%. The inventor claims that a single gallon of water contains the equivilant of 1500 gallons of hydrogen. In a gas form, hydrogen must be highly compressed and can be highly explosive. The inventor claims that a single gallon of water can power a vehicle for about 1500 miles?
I think there is potential in an on-board electrostatic hydrogen generator. It does not violate any rules of physics and has been done before, but I would not invest any money into this device,n unless you have the extra money and don;t mind the risk. I would wait until until it has been developed further and proven to work as well as the inventor claims. If it really works it will withstaqnd the scutiny and the smell test over the test of time.
The problem is that many of these devices have some potential, but the inventors hype them up to the point that nobody in their right mind would believe all the outragious claims.
...Rich