No longer will one be able to choose between either XM or Sirius satellite radio in a new Volkswagen or Audi, as the two brands have just signed an exclusive agreement with Sirius Satellite Radio through 2012. The companies have had a non-exclusive agreement with both providers for the past few years, but customers will lose XM as option beginning with 2007 models.

Audi states that the decision was made in order to reduce complexity in dealer ordering. That’s a shame as VW/Audi held a competitive advantage over its rivals by offering consumers a choice between the two. Volkswagen, however, will offer a three-month complimentary subscription to the service for those still interested.

[Source: VW/Audi]