General Motors said on Thursday it would supply car rental firm Avis Europe with more than 350,000 vehicles over the next five years in the largest European fleet agreement, Reuters reported.

The report said the partnership also involved shared fleet cost savings, joint marketing of GM brands in Europe and both sides helping to sell Avis vehicles to used car buyers.

"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," Dieter Woitscheck, chief operating director of Avis Europe, reportedly said.

Jonathan Browning, vice president of sales, marketing and aftersales at GM Europe, reportedly said: "This agreement leverages Avis's strong footprint and fleet management expertise and provides us with a tremendous opportunity to get a broad spectrum of potential customers into vehicles from each of our brands."

Reuters noted that Avis Europe has been hit hard by sluggish economies and competition eroding prices as well as the airline industry recession, particularly in the market for long-haul travellers who rent cars at airports.