XM and Toyota Extend Partnership for 10-years
XM Satellite Radio and Toyota Motor Sales, U.S.A. have extended their partnership together through 2017. Toyota's expects their annual factory production of XM-equipped vehicles to exceed one million vehicles by 2010.
Funny, because following the Honda announcement yesterday, my first thought was "great, but what's up with Toyota?" Well, here's our answer. The main thing that this does is lift some concerns that Toyota wasn't really dedicated to the XM partnership. In fact, this debunks that completely. One million units by 2010? Nice.
In 2006, Lexus introduced XM as a factory-installed standard feature on the new 2007 Lexus LS 460 L. XM Radio is also available in the 2007 LS 460, which includes the service in its navigation packages. Later this year, Lexus will provide factory-installed XM as standard equipment on the upcoming luxury hybrid, LS 600h L.


Comments
That interior looks like Roger from American Dad's space ship. Infact that center console looks like the shape of his head.
Posted by: Another Thought | January 31, 2007 9:52 AM
I guess Sirius will issue a press release stating that it is proud to announce that Sirius is an after-market option on Toyotas for the next 10 years.
Posted by: iband | January 31, 2007 10:09 AM
I can't believe XM did something right for a change. This is MAJOR, clean, neat and good for them.
Mel lost BIG time on this one... time to talk about back seat video and mergers.
Posted by: Pockpie | January 31, 2007 10:43 AM
Toyota and Honda? That's huge - two of the best brands on the market. And the two brands I own, coincidentally enough. :)
Posted by: Anonymous Coward | January 31, 2007 10:45 AM
That Pontiac AD sells XM with these words ... very cool !
XM Satellite Radio With a wide variety of programming, XM has something to excite any driver. Whether you want to be entertained or informed, to laugh, think, or sing, XM has the perfect channel for you - coast-to-coast, and in digital-quality sound. 3 trial months - no obligation
Posted by: MIke | January 31, 2007 11:20 AM
XM is once again aligned with Toyota again for another decade. Toyota, Lexus & Scion will ramp up production and what better company to unite yourself with than the future largest auto company in the world.
Siri-who?
(((XM)))
Posted by: Danny | January 31, 2007 12:23 PM
A notorious Sirius fanboy and name changing member of just about all the Sat Radio sites posted this yesterday:
"XM's further and deepening relationship with Honda pushes Toyota into Sirius's corner more. "
Go XM Go!
Posted by: XMScott ? | January 31, 2007 1:06 PM
I am still in shock.
XM did something right. Make it stop !!!!!!
Now what will thay do about 35% retail marketshare ?
Posted by: Pockpie | January 31, 2007 1:33 PM
I'm with you XM Scott, I hate it when people change their names. It should be against the law.
Posted by: Louis Malcolm | January 31, 2007 1:50 PM
If only everyone on this board did a little more research beyond what is said on this board you would all know that XM is not exclusive to Toyota. Toyota offers Sirius as a dealer and port installed product, and though there are no numbers for either side on exact sales, Sirius is estimated to sell more units through Toyota than XM factory installs.
The Honda deal is great for XM, however you need to notice one thing!
Sirius has deals with 40.5% of the market, XM with 36.97%, and both have 22.51%.
The manufacturers that Sirius has deals with make up 62.81% of the cars sold in America. That leaves XM with 59.49% - numbers don't add up to 100% because of dual deals.
So good for XM stricking a deal with Toyota and Honda. But never say Sirius-who, they control more of the OEM market than XM does, and more people are choosing them with dual deal OEM manufacturers.
Posted by: jkdillard1 ? | January 31, 2007 2:53 PM
jkdillard1 Nice post. Now I am not going to take it as gospel but it sure looks like you researched the topic. Thank You.
Now to add to it. How does GM/XM report a car where the customer sees a car that they want that has XM installed and will not/refuse to pay for it. Or what if a customer has the dealer swap out the radio for one with the Sirius brains installed. That would be an interesting figure for either Sirius or XM to report.
Imagine the reports Sirius sold 30,000 subscriptions in GM cars due to customer request or XM sold 30,000 subscriptions in Ford cars due to customer request.
It has to happen a lot more than we think.
Posted by: Another Thought | January 31, 2007 3:00 PM
Thank you Another Thought. It is nice for someone to notice.
GM does not offer Sirius through the factory or dealer, and Ford and Chrylser do not offer XM thorugh the dealer or factory. If you want the non-exclusive in your car for these manufacturers you have to buy an external unit.
The only ones that share (where you have a choice) are: Toyota, Nissan, and Subaru. And while none publish how many of either sold, research indicates that whom ever is the retail leader is normally the OEM leader for that manufacturer. So those three most likely sell more Sirius than XM, since customers have a choice on which one to buy, just like they do in retail where Sirius is over 60% of the market right now. Two years ago it was the opposite way.
XM has exclusives with: GM, Honda, Hyundai, Suzuki, Saab, and Porsche.
Sirius has exclusives with: Ford, Chrylser, Mazda, Mitsubishi, Kia, VW, BMW, Volvo, Mercedes-Benz, Jaguar, Audi, and Land Rover.
And of course those exclusives count for the child companies too, i.e. XM has Acura and Sirius has Lincoln/Mercury.
Posted by: jkdillard1 ? | January 31, 2007 6:06 PM
"But never say Sirius-who, they control more of the OEM market than XM does,"
Incorrect. XM runs 60% of OEM market share and is available over 140 models, all more that Siri-who.
"XM has exclusives with: GM, Honda, Hyundai, Suzuki, Saab, and Porsche."
Also an exclusive partnership with Nissan & Infiniti effective '08 model year. Dont forget: Saturn, Hummer, Buick, Cadillac, Chevrolet, Harley-Davidson, Isuzu, Pontiac, Scion & Subaru...
XM is effectively partnered up with the automotive giants who not only lead in sales but quality. (i.e. Japanese companies)
Go (((XM)))
Posted by: Dan | January 31, 2007 7:01 PM
Such a shame, Toyotas and Hondas are good cars with second-rate satellite radio service.
Here's a a great service market opportunity for folks who will rip those XM units out and upgrade a car to Sirius for a small fee.
Posted by: SatRadMadMan ? | January 31, 2007 10:33 PM
"Also an exclusive partnership with Nissan & Infiniti effective '08 model year. Dont forget: Saturn, Hummer, Buick, Cadillac, Chevrolet, Harley-Davidson, Isuzu, Pontiac, Scion & Subaru...
XM is effectively partnered up with the automotive giants who not only lead in sales but quality. (i.e. Japanese companies)
Go (((XM)))"
Japanese Companies. The quality is not that good. GM/Ford Trucks are just as reliable as Toyota's and Nissans(French). I have heard countless stories that the Tundra is really reliable but the truth is the owners are anal about their trucks and get stupid crap fixed where as a GM or Ford truck owner doesn't care and runs the truck forever.
And Wow, Scion, Hummer, Isuzu and Harley. All niche vehicles and hardly a huge part of any deal. Isuzu is going down. Hummer is going down because they discontinued the only realy truck. Scions are uglier than the Honda Element well maybe not the tC but that minivan is ugly.
Posted by: Anonymous Coward | February 1, 2007 10:50 AM
jkdillard1 wrote:
"The Honda deal is great for XM, however you need to notice one thing!
Sirius has deals with 40.5% of the market, XM with 36.97%, and both have 22.51%.
The manufacturers that Sirius has deals with make up 62.81% of the cars sold in America. That leaves XM with 59.49% - numbers don't add up to 100% because of dual deals.
So good for XM stricking a deal with Toyota and Honda. But never say Sirius-who, they control more of the OEM market than XM does, and more people are choosing them with dual deal OEM manufacturers."
....and you go with....
"XM has exclusives with: GM, Honda, Hyundai, Suzuki, Saab, and Porsche.
Sirius has exclusives with: Ford, Chrylser, Mazda, Mitsubishi, Kia, VW, BMW, Volvo, Mercedes-Benz, Jaguar, Audi, and Land Rover."
------------
If you based your percentages off of what you commented on here, then you are unfairly giving Sirius the edge. Audi is a subsidiary of VW, and Jaguar is Ford. Why not break up GM and say "Chevy, Pontiac, Cadillac...etc".
How about a more fair comparison?
Posted by: SatelliteRadioFan ? | February 1, 2007 10:55 AM
- Why not break up GM and say "Chevy, Pontiac, Cadillac...etc".
How about a more fair comparison? -
It's worse than that. Jaguar, Volvo, Mazda and Land Rover are all owned by Ford (or they at least have controlling interest). DaimlerChrysler has the Chrysler and Mercedes brands but also has Mitsubishi as a strategic business partner.
On the XM side Saab is GM owned, and oddly though Porsche is affiliated with VW (who is Sirius) they went with XM.
Judging by the websites (which don't really list who is "exclusive") it goes something like this:
XM: GM, Toyota, Honda, Porshe, Suzuki, Hyundai, Isuzu, some Subarus. Oh and Harley's too.
Sirius: Ford, DaimlerChrysler, Mitsubishi (partnered with DC not fully owned by them), VW (minus Porshe), BMW, some Subarus.
Those seem like the "exclusives" anyway, counting only parent companies and not the individual nameplates.
Posted by: SteveWeBB ? | February 1, 2007 11:58 AM
I should have Googled first - the automotive powerhouse KIA is also Sirius exclusive, but they're apparently not important enough for the website.
Posted by: SteveWeBB ? | February 1, 2007 12:09 PM
Subaru's and Izuzu are linked to GM as well.
If you want a full break down of Auto Companies and who really owns what it will come down to less than 10 total companies as most have partnerships with each other.
Did you know that Toyota and GM have a partnership and it is not just with the Pontiac Vibe and Toyota Matrix. It runs even deeper than that.
Posted by: Another Thought | February 1, 2007 12:27 PM
It can be argued that those companies that offer both will most likely sell more of the factory installed SDARS than the dealer installed ones. The reason is that factory installed units will also integrate with other electronics in the car, such as navigation and such.
People rarely buy dealer add-ons because the cost is usually ridiculous. It's cheaper to head over to the store and buy an add on version. This is why factory makes more sense, it comes with the car already and the price is baked in.
Posted by: SatelliteRadioFan ? | February 1, 2007 12:58 PM
"People rarely buy dealer add-ons because the cost is usually ridiculous. It's cheaper to head over to the store and buy an add on version. This is why factory makes more sense, it comes with the car already and the price is baked in.
Posted by: SatelliteRadioFan"
Sure it is already added in but there is no way that that I will be paying for it. I am looking at getting a new GMC Sierra and the cost for XM (factory installed) is $199.00. Granted it is $200 but I will not be paying for it.
Then again I will probably be ordering my truck from the factory (so I do not have to have Daytime Headlights) but in the case that I get a truck off the lot I shouldn't have to pay for it if I do not want it.
Posted by: Another Thought | February 1, 2007 1:10 PM
- Did you know that Toyota and GM have a partnership and it is not just with the Pontiac Vibe and Toyota Matrix. It runs even deeper than that. -
Yes, the Nummi (co-owned) plant in California. It's similar to the relationship Mitsubishi and DC (and before that ChryCo) have had for many years. The difference is in the finances, DC has invested in Mitsubishi, the same is not true of the GM / Toyota relationship. And I know about the GM and Subaru/Isuzu ties as well, but I don't believe GM actually has any large controlling interest in those companies - I could be wrong.
Posted by: SteveWeBB ? | February 1, 2007 1:30 PM
hyundai owns kia, and on and on with who owns what. at the end of the day, what is learned here? nothing
Posted by: FaFaFluFly ? | February 1, 2007 4:48 PM
- at the end of the day, what is learned here? -
What is learned is that XM has the better exclusive OEM deals. If I could find last years marketshare information (its around but not usually for free) I could break it down by percent which company has the exclusives with who. Nobody wants Fords or Chryslers, no matter how good the cars actually are or aren't. Americans are mostly a bunch of sellouts and would rather drive Toyotas and Hondas, unfortunately. Even if they are the SAME exact car, the "foreign" branded one has a higher resale and better quality ratings. Americans percieve "American" things to be crappy, it's the start of our decline from a first world nation.
- Yea, I forgot Hyundai bought controlling interest in Kia years ago. There's another example where one went to XM, the other to Sirius. The whole thing about who owns who is revelant in that it's much easier to focus on the parent company, rather than the 9 nameplates under it. Plus, it removes some of the slant in saying Sirius has Ford, Mazda, Jaguar and XM has GM. GM has brands too but somehow they're just "GM". Bottom line - go to Ford.com. Land Rover is no different than Saab is to GM.
Posted by: SteveWeBB ? | February 1, 2007 6:28 PM
jkdillard statement is 100% true. sirius' partners sold 6.8 million vehicles compared to 6.2 million from xm's partners. these are the exclusive deals. what are the facts stevewebb??
Posted by: FaFaFluFly ? | February 1, 2007 8:16 PM
I think what is being lost here is very important.
Sirius dominates when choice is an option. Recent numbers have been as high as 65% at retail. This is not a fluke.
HOWEVER... The Toyota deal was not in the cards for XM. Winning this is A VERY BIG DEAL as if Sirius would have announced a 2010-2017 contract with Toyota this would have been a show stopper.
Toyota is quality. Picking XM did more for XM in panache and worldwide respect as it did for the bottom line.
Think Ford, DCX and others doesn't notice who Toyota went with ?
They did, and they marked it in red.
I'm afraid that my beloved Sirius may be relegated to the halls of odd and unique, but is not going to win the beauty prize.
Face it, a company can't be hung on one 53 year old performer, and a 64 year old CEO ( although both are wonderful people in their trade ) and that's what has happened here.
The tide will change now with Toyota, and I am sad for my Sirius.
Posted by: Pockpie | February 1, 2007 9:05 PM