>> The factory install program with XM starts in the year 2006 and not the model year 2006 if I am not mistaken.
Thanks for this post. Controversy is why we're here.
This is, as yet, unclear. But Toyota's model year '07 isn't far away. Whether we'll see some start showing up late in MY06 is just unknown at this time.
The port installs and dealer installs will be available for both XM and Sirius.
That's true, for the next year, unless Toyota starts doing factory installs partway through MY'06.
Sirius and Toyota is not limited to Penske. All Toyota dealers can offer Sirius.
They can. Just like all Toyota dealers can offer Alpines, or for that matter, Audiovox P&Ps dealer installed if they want to. But Toyota dealers already have XM kiosks in place and are likely to stick with XM. But it *IS* possible some SIRI units will be sold in the coming year at non-Penske dealers.
The 8k you reference speaks to a deal about data services, and not satellite radio services.
Well, you're wrong.
The text of the 8K follows:
Today, XM announced that Toyota has selected XM as its supplier for satellite delivered data services for Toyota, Lexus and Scion vehicles. In addition, Toyota will offer XM radios as a factory-installed option in Toyota and Lexus vehicles.
As you can see, this is where Toyota stepped up on both data services and factory installs. (Things don't get factory installed in Toyotas or any other cars unless there is a deal in place to make it happen).
The new SEC requirement about what events trigger an 8k would not be necessary for the scenerio in question. By example, I would say that there have been other deals....with oem's, content, as well as retailers that have happened since the SEC rule change that did not have an SEC filing attributed to them.
I respectfully disagree; any such agreement would obviously be a "material definitive agreement" within the meaning of the statute. Apparently, XM's legal counsel believes this, too. Certainly, you'll agree, at a minimum, that given SIRI's history of hyping every little event, if they had any conceivable basis for filing they would have. I would also point out that, while Sirius showed a dealer installed Toyota at CES (with non-working displays), XM actually had Toyota representatives in its booth. Finally, the "midnight PR" really tells the story. It is clear Sirius burned some pretty major OEM bridges with this action.
I will say this -- had it not been for the Penske deal, Sirius would not have had ANY role with Toyota. Nothing. So, one could argue that the Penske deal DID ultimately pay off in some way. Although, I rather doubt they'll come close to recovering its cost.
By example, I would say that there have been other deals....with oem's, content, as well as retailers that have happened since the SEC rule change that did not have an SEC filing attributed to them.
Which were these?
The way I see the toyota deal is that for all of 2005, XM and Sirus will have dealer and port installs. At some point next year, XM will have a facory program in place.
I agree about this. But this in no way suggests you're looking at a 50/50 proposition during this period.
Port installs, especially with Toyota are more common than people realize. Many components of a toyota are port installed.
The point is the data services. I think you're missing the broader implications of it. If you want to have data services in a Toyota, you WILL have XM going forward. If you want Sirius in your Toyota, you will NOT have data services.
Now, you can argue, "Data services? Who needs that crap?". But this is the future, over the next several years -- and it is THE REASON XM has the factory install deal and Sirius doesn't. And you can get ready -- because there are other OEMs who surely don't want to stand idly by while XM's technology in Hondas and Toyotas leaves them standing by the side of the road.
I've discussed the importance of Xm's technology lead a lot here. It is just impossible to overstate its importance. While it doesn't get the hype a Howard Stern gets, it obviously is big in bringing subscribers onboard.
XM, today, already hinted that its guidance is looking 400K units short. By year's end, I suspect they'll have a million, or SOME millions, of C&P units on store shelves. For the first time, one gets the sense XM is really sandbagging its numbers.
We'll see, I guess. |
