GM Slashes XM Price 39%

General Motors Corp. cuts the price on XM Satellite Radio installation 39% on most '07 models, as it looks to expand infotainment options on its vehicles.

GM says it will offer the factory-installed option for $199, instead of the current $325 charge. GM's Hummer brand is the only division not lowering the installation price.

XM Satellite Radio Holdings Inc., which recently cut its 2006 subscriber forecast, is partially owned by GM and is its exclusive satellite radio provider. The price cut does not change XM's monthly $12.95 subscription fee.

“The economies of scale and engineering efficiencies brought by the rapid pace of XM Radio installations across GM's product lineup allow us to pass along cost savings to our customers,” says Mark LaNeve, GM vice president-North America sales, service and marketing. “XM Radio has become a must-have feature for many customers and demand just continues to grow.”

GM says it has built 4 million vehicles with factory-installed XM radios since 2001.

Chevrolet accounts for about half the total. A spokesman says the price cut does not mean dealers have too many XM-equipped vehicles.