XM Radio 1999 Annual Report Download - page 17

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15 1999 ANNUAL REPORT
OEM
XM
XM’s primary market is the driving public – a potential of 208 million
drivers based on the number of U.S. registered vehicles on the road today.
In 1999, radio manufacturers sold over 28 million car radios – 17 million
through new vehicles sale or lease, and 11 million as aftermarket or
replacement radios. The driving public includes over 115 million commuters,
9.3 million recreational vehicle owners, 3.1 million truckers and 25 million
rental-car drivers – all spending ever increasing amounts of time on the road.
Premier Car Partnership
General Motors represents 30% of the new U.S. car sales market,
representing 4.9 million potential radio units sold annually. Our unprecedented
agreement with GM calls for the world’s largest car company to market and
distribute XM-Ready radios, starting in 2001. The agreement also provides
for important product installation and marketing incentives. GM took an
important step in this direction late last year when it placed the first-ever order
for satellite-capable radios with Delphi Automotive Systems. GM is also a
committed strategic XM investor whose financial stake in our success
includes plans to work closely with us to market the XM service to its large
U.S. customer base.
Leading the Way with Trucks
In early March we announced agreements with two leading companies in the U.S.
truck market that will give XM considerable marketing and distribution clout.
Freightliner Corporation, the leading heavy truck manufacturer in North America,
and XM will jointly develop new, integrated wireless information and entertainment
services that will be compatible with Freightliner’s Truck Productivity ComputerTM.
Freightliner will also distribute and market XM service in its commercial vehicles.
Further expanding our reach to the commercial truck market, Pana-Pacific will
provide XM-Ready radios to its extensive customer base, which includes
Peterbilt, Mack, Kenworth, Navistar and Freightliner. Pana-Pacific is the nation’s
leading supplier of mobile electronics to the trucking market.
However you look at the equation, it adds up to opportunity for XM in the
key OEM markets.
WiTH THE PREMiER
AUTOMOBiLE AND TRUCK
DiSTRiBUTiON PARTNERS