Reply #87: XM Extends Deals With Toyota, Honda

[citizen snips]

WASHINGTON (AP) -- XM Satellite Radio Holdings Inc. on Wednesday announced a seven-year extension to an agreement with Toyota Motor Sales U.S.A. Inc. for factory installation of XM satellite radios in Toyota and Lexus vehicles.

The agreement extends an existing deal from 2010 to 2017, and follows a similar extension for XM with Honda Motor Co. announced a day earlier. Washington-based XM said Tuesday that Honda would install the radios in both Honda and Acura vehicles through 2016.

Both XM and rival Sirius Satellite Radio Inc. have been banking on growth from auto sales as the retail side of their business has softened, raising concerns on Wall Street. XM did not meet a target for subscriber growth last year, and Sirius met a lowered target.

Although investors have speculated that the two leaders of this young industry might merge, Kevin Martin, chairman of the Federal Communications Commission, mentioned on Jan. 17 that licenses granted to the satellite radio companies wouldn't permit them to combine. Some analysts had hoped the FCC would change the rule or make an exception.

more...
http://biz.yahoo.com/ap/070131/xm_satellite_radio_toyota.html?.v=1