Keeping AM radio in EVs could cost automakers $3.8 billion, report says

WASHINGTON — Keeping AM radio in new vehicles, including electric models, could cost automakers billions of dollars over the next seven years, according to a new report from the Center for Automotive Research.

In the October report, developed in partnership with the Alliance for Automotive Innovation, researchers found that reducing the electromagnetic interference generated by EVs, which can distort AM radio signals, is "challenging and could lead to added costs for vehicle manufacturers."

Through 2030, automakers could face a cumulative cost of up to $3.8 billion to address the interference that disrupts AM radio reception in EVs, according to the report.

Automakers can reduce — but not eliminate — the interference with design and engineering options such as shielding cables, interference filters, active noise cancellation and a strategic placement of components. But that comes at a cost, including added weight to the vehicle and shortened battery range.

One automaker that spoke to the center's researchers estimated shielding costs of $35 to $50 and filtering costs of $15 to $20 per vehicle.

"These costs can be avoided by deleting analog AM radio from vehicles and providing consumers with alternative products for in-vehicle audio content," such as digital AM and FM radio, streaming and satellite services, researchers found.

The report comes amid a bipartisan effort in Congress to prevent automakers from eliminating AM broadcast radio in new vehicles, including electric models. Lawmakers argue AM radio is still critical during large-scale emergencies.

In July, the Democratic-led Senate Commerce Committee advanced the bill, known as the AM Radio for Every Vehicle Act, which directs the U.S. Transportation Department to issue a rule requiring automakers to keep AM radio receivers in new vehicles as standard equipment.

A modified version of the bill allows the department to establish an effective compliance date within two to three years of a rule being issued. Automakers that made 40,000 or fewer passenger vehicles in 2022 would have at least four years to comply, according to the text.

The bill — opposed by major automakers and other industry and technology groups — has been steadily gaining support and is now cosponsored by at least 37 Democratic and Republican senators.

In the House, a bill by the same name led by Rep. Josh Gottheimer, D-N.J., has 180 cosponsors on both sides of the aisle.

At least seven automakers — BMW, Mazda, Polestar, Rivian, Tesla, Volkswagen and Volvo — do not offer broadcast AM radio in their EVs, citing electromagnetic interference from batteries, which can generate static, a high-frequency hum and other noise, and affect the reception of AM radio signals.

Ford Motor Co. previously said it would not include AM radio in any of its new models starting in 2024 but reversed course in May "after speaking with policy leaders about the importance of AM broadcast radio as a part of the emergency alert system."

In a blog post Monday, the head of the Alliance for Automotive Innovation argued keeping AM radio in new vehicles is unnecessary and that efforts to reduce interference in EVs would come "at a cost to customers."

"Requirements for airbags, brakes, side impact protection, seat belts and other life-saving vehicle safety systems? Yes," wrote John Bozzella, CEO of the alliance, which represents most major automakers in the U.S.

"But forcing automakers to install analog AM radio tuners in all new vehicles — including electric vehicles?" he continued. "The government has never gone there before."

In a statement to Automotive News, the National Association of Broadcasters argued that “hundreds of thousands of Americans” have voiced their support for keeping AM radio in new vehicles.

“It is noteworthy that the impartial Congressional Budget Office estimates the AM Radio for Every Vehicle Act would necessitate automakers spend a fraction of their estimate to ensure access to local AM radio stations in electric vehicles,” said Alex Siciliano, the association’s spokesperson.

“We hope automakers follow Ford’s lead in reversing their decision to remove AM radio capability from their vehicles to ensure the 82 million Americans who listen to AM radio have access to this local, free service,” he added.