General Motors announced that it is slashing the price of XM Satellite Radio to $199 for the 2007 model year, down 38.8 percent over last year's price of $325. The new price goes into effect immediately, and consumers still get the first three months of service included, with subsequent months costing $12.95 per month.

HUMMER won't be participating in the price cut, according to GM, but offering up XM is something of a lucrative activity for the General, according to Automotive News -- apparently the automaker gets a cut of subscription fees, as well as some extra cash each time its OnStar employees handle XM-related service calls.

[Source: Automotive News, free subscription required]