VAUXHALL has signed the UK's biggest yet fleet deal - a £1 billion contract with National Car Rental for the supply of 66,000 new cars and vans over the next three years. National is the new name of Republic Industries Automotive Rental Group's operation in the UK, the holding company for both EuroDollar and Alamo.

The new arrangement is comparable in volume terms to the numbers of vehicles Vauxhall previously sold to both rental companies. Nick Reilly, Vauxhall's chairman and managing director, denied the landmark agreement would affect Vauxhall's overall strategy of maintaining lower volumes of sales to the rental industry.

The new Vauxhall Astra will account for a substantial proportion of the 22,000 new Vauxhalls joining National's fleet each year. Other vehicles in the arrangement include Corsas, Vectras, Omegas and some vans. A key element of the new contract is its three-year duration, which supersedes the previous two-year agreement, and will offer both parties greater opportunities to develop marketing and remarketing initiatives.