In a broadly anticipated move, Toyota said Tuesday that it will factory-install
radios in cars starting in 2006. Meanwhile,
radios will be available as dealer-installed options on nine models beginning in February.
For the pay radio service providers, factory installation is the preferred arrangement, since it requires little in the way of incentives or effort on the sales side.
Shares of both companies jumped in early trading Tuesday. Sirius shares, which have already doubled in the past month, rose 59 cents, or 7%, to $8.68, and XM shares added 78 cents, or 2%, to $38.51.
XM radios are available as dealer-installed options in 10 Toyota and Lexus models already. Analysts had anticipated that XM would get the all-important factory installation selection from Toyota.
XM has made a number of exclusive agreements with automakers such as
to have radios installed in new cars. And Sirius has made similar arrangements with