Automakers voice support for Sirius-XM merger - Orbitcast

Automakers voice support for Sirius-XM merger

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Automakers support the merger
General Motors, Ford, Toyota, Honda, Hyundai and Kia have come out in full force and publicly supported a combined Sirius-XM. Chrysler even sent a letter to FCC Chairman Kevin Martin and Assistant Attorney General Thomas Barnett expressing no opposition to the merger.

GM cited the enhanced program offerings and lower prices, Ford point to a positive impact that the merger would have on the competitive landscape, and Hyundai noted the pricing benefits and the "best of both" option.

Here's some select statements released by Sirius-XM:

"General Motors believes the proposed merger is and will be in the public interest because the merged company will be able to offer consumers expanded programming choices and a broad range of service packages, including packages at lower prices." - (Richard M. Lee, Executive Director - Satellite Radio Services, General Motors North American Operations)

"We believe that a company that combines the capabilities of Sirius and XM could serve the interests of consumers by offering a more dynamic and potentially cost-effective product, spurring additional competition with audio entertainment providers such as terrestrial radio, and that this may result in greater innovation."
- (Paul Mascarenas, Vice President Engineering, Product Development - The Americas, Ford Motor Company)

" ... It has become evident that satellite radio and digital satellite services must compete mightily in the U.S. with a wide array of burgeoning entertainment forms and an ever-widening list of technology participants who are delivering services in this space."
- (Charles Koch, Manager, American Honda Product Planning)

"This expanded choice and lower price is exactly the value our consumers want and deserve."
- (Len Hunt, Executive Vice President and Chief Operating Officer, Kia Motors America)

"Rather than being forced to choose between content that currently is exclusive to one satellite radio provider, our customers will gain access to packages offering the 'best of both' services for significantly less than the current combined price, as well as packages of fewer channels at much lower prices."
- (Wayne Killen, Director of Product Planning, Hyundai Motor America)

Last year, these auto manufacturers sold over 85% of the light vehicles sold in the United States.

6 Comments

nothing like waiting until the 11th hour!!!!!!!

customer... "I dont know if I want XM or sirius.. so give me the stock Sterio"
Car Salesman (thoughts only) "Damn.... less options so less commision"

GM/Ford/Chrysler all want the merger cause it will help them sell options ... its been known for a long time that the options are where they make their money in cars. higher profit margin on the options.

do they want the merger... Well DUH!

Will be nice to be able to buy a Cadillac CTS next year with the builtin unit and listen to Howard Stern finally. This is only a good thing, unless your a pest. Then you just have to hope the head units will have an iPod connection.

Oh, and Honda and GM would like to get some money back from XM, but I am sure that has NOTHING to do with this, right :-)

What is really great is GM puts XM in standard in the truck I bought. I didn't pay the $200 it costs. I ordered my truck without it. Of course they build the truck with it and I still didn't pay for it. Ford build a friends truck and he got a lifetime sub with it as part of the deal. I do not believe all dealers/manufactures are making money on sat. radio but they are still probably getting their kick back from Sirius or XM.

another thought,

Two of the original capital funder of XM were GM and Honda.