Ford to Supply Vehicles to Zipcar for University Fleets
Aug. 31 (Bloomberg) -- Scott Griffith, chief executive officer of Zipcar Inc., talks about the company's two-year agreement with Ford Motor Co. to have the automaker become Zipcar's largest supplier of cars for the college market. Griffith speaks with Lisa Murphy on Bloomberg Television's "Fast Forward." (Source: Bloomberg)
Ford Motor Co. (F) 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 67 cents, or 3.3 percent, to $21.03 at 4 p.m. in the Nasdaq Stock Market trading. The shares have gained 17 percent from the Cambridge, Massachusetts-based company’s initial public offering in April.
Ford, based in Dearborn, Michigan, gained 25 cents, or 2.3 percent, to $11.12 in New York Stock Exchange composite trading.
To contact the reporter on this story: Mark Clothier in Southfield, Michigan at mclothier@bloomberg.net
To contact the editor responsible for this story: Jamie Butters at jbutters@bloomberg.net
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