• 9

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]

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
      • 9 Years Ago
      This is positive news to XMSR investors...
      A 4% blip today on the news:

      I suppose they are counting on getting more subscribers in the long run. Locking in as many as possible.
      • 9 Years Ago
      With stand alone receiver at $50 a pop, it's hardly justified to charge $325 or even $200 on a 'built-in' sat radio.

      'Free Local Radio'? You mean gullets stuffed of annoying add and the same 5 cd in a llop free radio?

      The correct answer was 'PMP'. Any kind. Does not need to be an EyePod. You can load your own music you like, and listen to whatever you like and even chose when you want to listen to a specific piece. What a concept!
      • 9 Years Ago

      XM is at close to 9 million subscribers Sirius has about 4 million, those are nearly double what they were in late 2004. Sirius is looking to be at close to 6 million by years end.

      They're looking at the long term and commission money to be made, remember when cellphones were slow sellers?
      • 9 Years Ago
      An XM radio was standard equipment on my '04 Honda Accord EX-L, so I signed up for 3 years in advance which lowered both the cost and annoyance of monthly billing. Before buying that car I didn't know what XM radio was.

      I do so little driving that it's a much of a waste in the car, though I do enjoy it while driving.

      But as I write this, I'm listening to XM via the computer because a mobile subscription includes online access to most channels, and XM sounds great through the speakers attached to the computer (an iMac).

      When my Accord was 4 months old I drove from San Francisco to Palm Springs (about 8.5 hours) and the XM radio was fantastic. I like Broadway show music and there's a channel devoted entirely to that. It really made the trip enjoyable.

      The sound quality is great and there's no diddling with CDs or changing channels because the same channel never fades away; few selections were repeated, too.

      I enjoy the surprise of whatever the next selection is--there were songs from shows I hadn't seen nor heard in decades. For anybody taking long trips, XM is worth having IMO.

      Could be that a major threat to XM is the iPod (and other MP3 players) on which a huge music collection can be brought into any vehicle having a player port--something that'll soon be standard on all cars.

      I'll probably renew my XM subscription, but I won't buy XM stock.
      • 9 Years Ago
      More than 90 percent of GM's '06 and '07 U.S. vehicles offer the XM Satellite Radio as either an option or standard equipment so I guess a price slash would be a good idea - at least for the part of the consumers.
      • 9 Years Ago
      This is hardly news. The prices on many 2007 GM cars have been out for months, with this price for XM on them.

      GM isn't even the first to charge so little. Chrysler charged $195 for satellite radio on many 2006 models, but I don't recall this making it into the news. Perhaps GM just felt the need to match Chrysler.

      • 9 Years Ago
      I'm into my second year of satellite radio, and every time I have to listen to terrestrial radio (in my wife's vehicle, or when my daughter changes stations on me) I QUICKLY tire of the constant racket of commercials. If you haven't tried satellite, you don't know what you're missing. It's worth every penny.
      • 9 Years Ago
      Prices are being cut because thus-far, satellite radio isn't selling well. Not just at GM, not just at XM, but as an industry. Most people prefer free local radio and likely will continue to do so.
      • 9 Years Ago
      Now let's see a reduction in OnStar prices. We got this for "free" in our '06 Impala and love it - for a small fee we can buy minutes, and the phone works places our regular cell phones don't. Plus, if we REALLY screw up and drive into a ditch somewhere, OnStar will alert emergency crews, something our cellphone's can't do.

      BUT, if I get a Malibu or HHR, they want me to pop $700 for OnStar, and it just ain't worth it at that price (we got our Impala for around $18k, so don't tell me the extra cost of the Impala makes up for the free OnStar).