XM Satellite Going Standard in Hyundais

The deal further extends its lead against Sirius in the key auto space.
By Scott Moritz ,

Updated from 9 a.m.

Shares of

XM Satellite

(XMSR)

rose Wednesday after the company said Korean automaker

Hyundai

will include its radios as standard equipment in all its U.S. cars starting next year.

The deal is seen as a big win for XM in the auto market, where the bulk of the industry's subscriber growth is expected to come from as pay radio catches on with consumers.

The Hyundai agreement marks the first time a carmaker has offered satellite radios as factory-installed standard equipment rather than a luxury option. The deal also further strengthens XM's lead over rival

Sirius

(SIRI) - Get Report

with automakers. XM's auto partners include

GM

(GM) - Get Report

,

Honda

(HMC) - Get Report

and

Toyota

(TM) - Get Report

. Sirius' car partners include

Ford

(F) - Get Report

,

DaimlerChrysler

(DCX)

and

BMW

.

"Including XM as standard equipment in all of its vehicles makes this one of the most aggressive automotive rollouts of XM Satellite Radio ever," said XM chief Hugh Panero, in a press release.

Separately, Sirius said Wednesday that Mercedes will offer its radios in the 2006 model of its M-Class SUV.

XM shares closed up $2.41, or nearly 9% to $30.45, and Sirius closed up 14 cents, or 3%, to $5.42.

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