Hertz corrects its estimate in final paragraph to 1.8 million tonnes from 3.5 million)

By David Shepardson and Joseph White

(Reuters) -Rental car company Hertz Global Holdings (OTC:HTZGQ) plans to order up to 175,000 General Motors Co (NYSE:GM) electric vehicles over the next five years, its latest move toward zero-emission models.

The multi-billion dollar, multi-year deal could be the first of many GM agreements to supply electric vehicles to rental car companies, said Steve Carlisle, the automaker's North American operations chief, on a conference call.It's an enormous first step," Carlisle said, adding that GM is in talks about similar deals with other rental car companies.

GM shares fell more than 5% Tuesday afternoon following rival Ford Motor (NYSE:F) Co's warning late Monday that supply chain costs were $1 billion higher than expected in the third quarter. Ford shares were down more than 11%.

Automakers have cut reliance on low-profit, bulk sales to rental car agencies as supply chain problems curtailed production. Carlisle said GM expects to deliver electric vehicles to Hertz at close to retail profit margins.

GM Chief Executive Mary Barra said in a statement "each rental experience will further increase purchase consideration for our products and drive growth for our company."