Delphi Automotive Systems announced yesterday that it has been awarded the first ever satellite radio manufacturing order. Delphi recently completed a deal to develop and manufacture original equipment radios capable of receiving AM, FM and XM Satellite Radio signals for new General Motors vehicles.
The deal represents a multi-year purchase order for radios; specific terms of the agreement were not disclosed.
"We are very pleased to receive this initial order for satellite band receivers," said David B. Wohleen, president of Delphi Delco Electronics Systems. "From putting the first car radio into an instrument panel to today's satellite receiver business, we are uniquely positioned to help our customers take vehicle entertainment and information systems into the next century."
Ron Zarella, president of GM North America, said, "Superior entertainment and information services will play a significant role in the automobile of the future. We look forward to working with Delphi and XM to build the next generation of radios for the enjoyment of GM car buyers."
And Hugh Panero, XM's president and CEO, said, "This purchase order is another key step in XM's effort to bring a new band of radio to listeners across the country. Delphi has a long history of recognizing winning innovations in radio technology for the car, and we are very pleased that this automotive audio leader will soon be manufacturing AM/FM/XM compatible radios. The contract between GM and Delphi validates our technology and our business model."
Radios and antennas capable of receiving a proprietary XM Satellite signal will be manufactured by Delphi Delco Electronics Systems, a subsidiary of Delphi Automotive Systems. The consumer interface on the new receivers will be simple and user-friendly, featuring existing band selection methods to provide FM1, FM2, AM and the new XM Satellite Radio S-Band selections. The S-Band will provide the channel, type of music and song name on its LED display.
Delphi Delco Electronics Systems produces a complete product line of original equipment audio systems, providing everything from antennas, speakers to a broad range of head units that accommodate various playback devices.
XM Satellite Radio will use direct satellite-to-receiver broadcasting technology to provide the signal nationwide. The subscription service is scheduled to start during the first half of 2001 for $9.95 a month. (The first cars with the radios will most likely be 2001 models, available in the first quarter of 2000.) XM will offer as many as 100 national channels of music, news, entertainment and children's programming directly from its satellites to cars, other vehicles and homes. American Mobile Satellite Corporation holds controlling interest in the company, whose other investors include industry leaders Clear Channel Communications Inc.; DirecTV, Inc., General Motors Corporation; and a private investment group comprised of Columbia Capital, Telcom Ventures L.L.C., and Madison Dearborn Partners Communications.