XM STANDARD ON ALL CADDYs.
This is pretty big news....this is the Holy Grail -- standard equipment.
OnStar, XM Satellite Radio working on creating combined service package
GREG BOWENS | Automotive News
Posted Date: 1/27/05
DETROIT -- The relationship between OnStar Corp. and XM Satellite Radio Inc. has produced two bundles of joy for the companies: an antenna that works for both services and shared customer service.
The companies are working on bundling subscriptions and developing hardware that would be compatible with both technologies.
"When it comes to bundling and packaging, there are a lot of things we can do together," says XM CEO Hugh Panero.
OnStar and XM have a common link: General Motors. OnStar is GM's telematics unit. GM owns 3 percent of XM. Both services are available in many GM nameplates.
Rick Lee, vice president of satellite radio service for OnStar, says the next step for OnStar and XM is to offer subscribers a combined service package.
"We should have something up within the next 12 to 16 months," he says. "Obviously, to take that next step is a bit more complicated than where we are today, where we are offering three months of free service when you buy your car."
But XM and Honda offer a bundled subscription package for customers who get both satellite radio and real-time traffic updates for the navigation system on the Acura RL.
GM plans to offer buyers of the 2005 Cadillac CTS three months of free service for XM and real-time traffic updates, followed by a bundled subscription package at $14.98 a month, a GM source says. The bundle price would be a $5 monthly saving.
GM will make XM radios standard on all 2006 Cadillacs and include a 90-day subscription.
OnStar and XM also are working on hardware that would merge the two technologies into a single unit to reduce cost and space. The companies have done something similar in the past, introducing a single antenna that can pick up both an XM radio and OnStar signal. The antenna debuted on the 2004 model Cadillac SRX.
OnStar and XM also use the same customer service employees, who work out of the OnStar call center. These employees, who are known for unlocking doors and calling police, help new XM customers with the basics of operating the radio. |
