Ford to supply vehicles to Zipcar for university campus fleets

Ford Motor Co. said it reached a two-year agreement establishing it as Zipcar Inc.'s largest supplier of cars for the college market.

Zipcar will add as many as 650 Fords, mostly Focus compacts and Escape small sport-utility vehicles, to its lineup during this academic year and as many as 1,000 vehicles during the agreement. The short-term rental-car company will discount its $35 annual membership fee by $10 for 100,000 new university student members as part of the accord.

The program exposes new drivers to Ford models “while helping them reduce their cost of living and help relieve congestion on campus,” Executive Chairman Bill Ford said in a statement.

Zipcar rose 74 cents, or 3.6 percent, to $21.10 at 9:52 a.m. in the Nasdaq Stock Market trading. The shares gained 13 percent from the Cambridge, Massachusetts-based company's initial public offering in April through yesterday.

Ford, based in Dearborn, Michigan, gained 29 cents, or 2.7 percent, to $11.16 in New York Stock Exchange composite trading.