GM Slashes XM Satellite Radio Price 39%
GM says it will offer the factory-installed option for $199, instead of the current $325 charge, on most '07 model vehicles.
August 16, 2006
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 the monthly $12.95 subscription fee XM charges subscribers.
“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,” Mark LaNeve, GM vice president-North America sales, service and marketing, says. “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. Of the total, Chevrolet accounts for about half.
A GM spokesman says the price cut does not mean GM has too many XM-equipped vehicles on dealer lots.
Earlier this month, GM and Ford Motor Co. said they planned to offer auxiliary jacks for the popular iPod music player on most ’07 models. GM will charge $160, while Ford charges $200 for the equipment, which connects the iPod to the vehicle’s stereo system.
XM reported a second-quarter loss of $231.7 million, on revenue of $227.8 million, widening year-ago’s $148.8 million loss.
Citing regulatory uncertainties facing “plug-and-play” radios, XM lowered its subscriber forecast for 2006, projecting it will end the year with 7.7 million-8.2 million subscribers, down from its initial projection of 8.5 million.
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