General Motors Europe has signed a deal worth more than £4bn with Avis Europe to supply the rental company with more than 350,000 vehicles over the next five years. The biggest agreement in Avis' history covers Vauxhall, Saab and Daewoo and includes shared fleet cost savings and combined vehicle re-marketing channels. The contract covers all Western and Central European markets with an option to extend into the Middle East and Africa.

Both companies will join forces to sell Avis vehicles at the end of the rental, combining GME's and Avis's expanding re-marketing strengths. Both firms say this cooperation will benefit used car buyers through greater choice, better vehicle access and availability.

Jonathan Browning, GME vice- president of sales, marketing, and aftersales, says: “This agreement gives us the opportunity to get a broad spectrum of potential customers into vehicles from each of our brands.

“It will allow customers to experience the strengths and quality of our products first hand and at the same time ensure that the inherent value of our vehicles is retained through the resale process.”

Dieter Woitscheck, chief operating director of Avis Europe, says: “This is the largest and most far reaching fleet deal in Europe, with the new agreement on fleet buying and selling and the efficiency review of processing over 350,000 vehicles, providing real cost benefits for both parties.

“With the largest fleet and network in Europe, our car rental customers and ex-rental car buyers will benefit from a wider range of newer vehicles.”

He also hints that the programme might be used as a test bed for alternative fuel vehicles, saying: “Any advances in GM's technology to further reduce the impact on the environment will be rapidly brought onto Avis's fleet.”

GME is undergoing a major product offensive that will see 58 new products and variants launched in the European marketplace over a five year period.