DETROIT -- General Motors has cut the price of adding XM Satellite Radio to most of its vehicles to $199 for the 2007 model year. The new price, effective immediately, is 38.8 percent less than the current price of $325.
Buyers who take the XM option still get the first three months of service included in the price. After that, the XM service requires a subscription, with the standard service plan costing $12.95 a month.
The Hummer brand is not participating in the price reduction, a GM spokesman said today. XM radio is standard equipment on all Cadillac models.
The move also benefits GM. According to XM's 10-K filing with the U.S. Securities and Exchange Commission, GM gets an unspecified share of subscriber fees paid by GM owners who sign up for an XM subscription plan. XM also reimburses GM for the costs of OnStar call center workers who handle XM service issues.
Among all its automaker customers, XM says about 55 percent of new-vehicle buyers take XM when it is offered. The GM spokesman said the take rate for the option at GM tracks closely with the overall take rate.
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