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CD Radio, GM Reopen SDAR Talks

CD Radio and General Motors have restarted negotiations to build satellite digital audio radio (SDAR) receivers for GM vehicles, CD Radio said.

The turnabout follows CD Radio’s April announcement that GM informed the company an agreement with rival XM Satellite Radio was expected soon. At that time, GM and CD Radio ended discussions, CD Radio said. Now, a CD Radio spokesman said, GM has “called us to begin reengaging.”

XM’s satellites are being built by GM subsidiary Hughes, and through Hughes, GM owns about 25% of XM.

Both CD Radio and XM plan fourth-quarter 2000 launches of incompatible SDAR services, and both have signed agreements with GM subsidiary Delphi Delco to build separate SDAR receivers for their technologies. Delco said it might eventually build one radio that receives the subscription services of both companies.

CD Radio has also signed Recoton to build car receivers, and XM has signed Alpine, Pioneer and Sharp to manufacture receivers for its services. CD Radio is targeting the car market, while XM is targeting the home and car markets. – Joseph Palenchar