• Locog chief executive says it is on track to beat £700m
• UPS unveiled as 22nd major sponsor of London Games

London 2012 organisers have said they would hit the top end of their sponsorship target of between £600m and £700m insisting that the global economic slump had not dampened the corporate appetite for involvement in the Olympics.

Unveiling UPS as its 22nd sponsor the London Organising Committee of the Olympic Games (Locog) chief executive Paul Deighton said it was on track to meet or exceed the £700m barrier. He said the new deal took the total raised so far to £550m and that the remainder would be achieved by tying up a string of further tier-two and tier-three deals worth at least £20m and £10m respectively.

Organisers were able to lock in the majority of major sponsors before the worst effects of the global slump became clear. There were fears 18 months ago that the last batch of deals would be more difficult to wrap up but Deighton said negotiations had not been adversely affected.

"There is nothing quite like the Olympic Games and the Paralympic Games. It has got a set of values attached to it which business would really really like to be associated with" he said. "In the modern world that kind of value-based association is much more powerful than a traditional advert."

based on negotiations already in train Deighton said he was "comfortable" in predicting that Locog would meet or exceed its target. "From the perspective of the overall economic environment I think people are planning for recovery rather than managing through the worst of it" he said. "The momentum of our sponsorship programme and the excitement of the Olympics is a strong pull despite the economic background."

Locog must raise £2bn from private sources in order to stage the Games – a third comes from its own sponsors a third from International Olympic Committee partners and a third from ticket sales.

Deighton who on Tuesday night spoke alongside the mayor of London Boris Johnson at an event designed to convince wealthy patrons to back the Team 2012 athlete programme that was launched the same day with a £10m investment from Visa said any extra money raised from domestic sponsorship would be reinvested elsewhere.

UPS will act as the official logistics and express delivery partner and was named as the fifth "tier two" partner. The deal mainly to be delivered in kind is worth upwards of £20m. Dan Brutton the president of UPS International said it would also look to sponsor Team GB athletes and would adopt specific squads to follow.

Aside from having to deal with the travails of IT partner Nortel which was replaced as a tier-one sponsor with Cisco when it entered Chapter 11 bankruptcy protection earlier this year Locog has managed to avoid the worst effects of the slump.

Deighton's assessment will also be encouraging to the four cities bidding to host the 2016 Games to be decided in Copenhagen this Friday.

He also revealed there was no way that Cadbury subject of a takeover a9abid by US food giant Kraft would be able to renege on its sponsorship if the deal went through. "There's no basis upon which the deal with Cadbury's can be changed based on their change of control" he said.

The Locog chief executive who will next week deliver an update on London's progress to the IOC at its congress in Copenhagen also confirmed for the first time that it was looking for a car sponsor.

Historically the category has been filled by the IOC's partner programme but after the Sochi 2014 Winter Games appointed Volkswagen as a tier one domestic partner it will fall to London to also find an automobile partner.

"We'd expect the car category to be a domestic category so that is one of the things we are looking at" said Deighton adding that environmental factors would be a consideration.

Deighton will also meet with sporting federations in Copenhagen in a bid to resolve an ongoing row over where badminton and rhythmic gymnastics should be sited. Locog is keen to save £40m by not building a temporary arena on the Greenwich Peninsula. A plan to build a venue in Barking that would deliver greater legacy benefits is under consideration.

"The balance in trading these things off is very fine now so final resolution is quite hard. That reflects the fact we've squeezed every bit of economic advantage out of moving the venues" he claimed.