GM and Segway are joining forces in what the two companies say is a reinvention of urban transportation.

Tuesday, GM and Segway said they are developing an electric two-seat prototype vehicle with just two wheels that can travel at speeds up to 56 km/h, with a range up to 56 kms between recharges.

GM says that would "allow people to travel around cities more quickly, safely, quietly and cleanly, and at a lower total cost."

The collaboration, dubbed Project P.U.M.A. (Personal Urban Mobility and Accessibility) combines several technologies that increase mobility freedom with zero emissions, enhanced safety, seamless connectivity and reduced congestion in cities.

GM said in a statement the vehicle enables design creativity, fashion, fun and social networking. "Imagine small, nimble electric vehicles that know where other moving objects are and avoid running into them," said GM vice president of research and development Larry Burns. "Now, connect those vehicles in an Internet-like web and you can greatly enhance the ability of people to move through cities, find places to park and connect to their social and business networks."

Neither company disclosed the selling price, but said the operating cost, including purchase price, insurance, maintenance and fuel, would be about a third or less than that of the average traditional car, so $5,000 doesn't seem far off.