HYUNDAI STRIKE A DEAL WITH XM SATELLITE RADIO

From Reuters:
Hyundai Motor Co. said on Wednesday it plans to offer XM Satellite Radio as standard equipment on all U.S. models around 2007, sending XM's share price up more than 5 percent.

Hyundai, the No. 7 automaker and one of the fastest growing brands, plans to put XM radios in 75 percent of its vehicles by the end of 2006, with remaining models following quickly and totaling 500,000 units by 2007.

Buyers of Hyundai's Sonata, Santa Fe, Elantra and other upcoming models will receive three free months of XM's service and will have an option thereafter of paying to keep the system active. XM's nationwide service offers more than 100 channels of music, sports, news and talk, most of them commercial free.

The installation of satellite radios in new cars is a key growth area for the nascent satellite radio industry, which comprises XM and smaller rival Sirius Satellite Radio Inc.

XM shares were up $1.46 at $29.50 in morning trading on Nasdaq. Sirius shares rose 9 cents, or almost 2 percent, to $5.38.

XM also has deals with General Motors Corp. and Toyota Motor Corp. Sirius has deals with Ford Motor Co., DaimlerChrysler AG and other carmakers that include its radios as a factory-installed option.

Both XM and Sirius charge subscribers a monthly fee for their satellite radio services. XM currently has about 3.2 million subscribers, while Sirius has about 1.2 million subscribers.

Hyundai's U.S. sales rose 4.3 percent last year for a marketshare of 2.5 percent, greater than competitors such as Volkswagen, Mazda and Mitsubishi.

Separately, Sirius said it made deals with Jaguar and Land Rover to install its radio in their automobiles.