CUT price daily rental firm easyRentacar is in talks with DaimlerChrysler to expand its fleet of Mercedes-Benz A-class vehicles to more than 20,000 cars over three years in a deal that could be worth more than £225 million at showroom prices. The rental firm is already committed to more than doubling the size of its fleet, from about 4,000 to 9,000 vehicles, in a deal with a retail value of more than £65 million announced at the Geneva Motor Show.

EasyRentacar will take delivery of 5,000 Mercedes-Benz A-class cars in a move that is expected to make the hire company the largest A-class buyer in the world. The company declined to comment on rumours that it was looking to demerge the rental operation from parent company easyGroup.

James Rothnie, easyGroup's director of corporate affairs, confirmed that easyGroup was in talks with DaimlerChrysler about expanding the fleet to 20,000 cars over the next three years and added: 'It would be good to have one single type of car - i.e. A-class - and time will tell.' By taking delivery of 5,000 A-class cars this year, the business is expected to account for 2.5% of total A-class annual sales.