Well, it's a story where no scientific proof is given so of course Fox News and CNN would show it.

Basically, water IS a combustion product. Whenever you burn a hydrocarbon (such as gasoline, methane, ethane, etc.), you get nothing but CO2 and H2O. (We get other stuff as well when burning gas, but that's due to contaminants in gasoline). Water is simply the product of burning hydrogen with oxygen.
Things burn because they are going from a higher energetic state to a lower energetic state. In doing that, energy is given off. This is why we get heat when stuff is on fire, or energy from the burning of gasoline. The atoms in the molecules go from a high energy state to a lower energy state.
To get hydrogen out of water, you MUST put in more energy than you get out from it. You absolutely have to. Anyone who says otherwise is a complete lier. So for this "hydrogen car", if they claim that they are getting hydrogen gas on demand for cheap, they are not telling the truth and are trying to scam you.