Avis Europe signs deal with GM

Car rental group Avis Europe today said it had signed Europe’s largest ever fleet partnership deal with US car maker General Motors.

Avis said GM would supply it with 350,000 vehicles during the next five years in the “largest fleet agreement in history” on the continent.

In addition to the supply of vehicles, the two companies said the agreement entailed a comprehensive joint marketing effort, that would raise awareness of GM Europe brands throughout Avis’s European business.

The pair will also join forces in selling Avis vehicles when they reach the end of their rental lives.

They said the deal would benefit used car buyers through greater choice, better vehicle access and availability.

The agreement includes GM’s Opel, Vauxhall, Saab and Daewoo brands in Europe and covers all Western and Central European markets.

It also includes an option to expand the arrangement eventually into the Middle East and Africa.

Avis Europe’s chief operating director Dieter Woitscheck said: “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.

“Any advances in GM’s technology to further reduce the impact on the environment will be rapidly brought on to Avis’ fleet.”

GM Europe is in the midst of a major product offensive that will see some 58 new products or significant variants in the European marketplace during a five year period.

Its portfolio covers both cars and commercial vehicles, which it said would enable Avis to cover a significant part of its needs in just one contract.

Avis said last month that it saw no strong near-term recovery in corporate business despite seeing trading recover from the impact of the Iraq war.

The company said then that the conflict and the weaker pricing environment had significantly affected profits in the six months to June 30.

Avis said long-haul travel continued to be depressed, forcing Avis to stick to its forecast that full year revenues would be between 4% and 7% lower than previously expected.