updated 8/31/2011 12:54:11 PM ET 2011-08-31T16:54:11

Ford Motor Co. and Zipcar Inc. said Wednesday the automaker has agreed to provide hundreds of its vehicles for the car sharing service's college campus fleets across the country.

Financial terms of the two-year agreement were not disclosed.

Under the agreement, Zipcar will add up to 650 Ford vehicles to its lineup during this school year and up to 1,000 vehicles during the life of the agreement. Most of the vehicles will be Ford's Focus small car and Escape sport utility vehicle, the companies said.

In addition, Zipcar will offer $10 off its $35 annual membership fee for the first 100,000 new college students who sign up for Zipcar. It will also deduct $1 off the hourly rate for the first 1 million hours of use on any of the new Ford vehicles at certain colleges and universities.

Zipcar, which was founded in 2000 and has yet to turn a profit, offers users a twist on the typical rental-car business. Instead of going to a rental lot, members reserve a car that's parked nearby, which they unlock with a keycard. The cars are usually rented out by the hour instead of by the day.

The Ford vehicles will start arriving on campuses this week.

Zipcar, which has partnerships with over 250 colleges and universities across North America, said its services are especially attractive to college students, because it helps them save money, avoid the hassles of parking and maintenance, and reduce their carbon footprint.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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