Automakers Still Not Tuned-in To HD Radio

see also: How Does It Sound?

Washington DC April 26, 2007; The AIADA newsletter reported that HD Radio has so far failed to win over U.S. carmakers.

Only Hyundai, BMW, and Jaguar plan to offer HD Radio, and officials from GM and Chrysler Group said they were not rushing to commit to the devices, which would cost the struggling Big Three U.S. automakers as much as an estimated $600 million annually to install.

"We're investigating HD radio and we'll probably make a decision in six months. When you add up the cost, it's a lot of money," said Michael Kane, director of technology strategy for Chrysler, told Reuters.

The radios are estimated to cost each of the three carmakers about $150 million to $200 million annually.

HD Radio promises to deliver better sound quality than traditional analog radio and enables stations to broadcast multiple channels. More than a tenth of the estimated 12,000-plus U.S. radio stations have upgraded to the technology, including many in the country's top 100 markets. "I don't think there are too many American carmakers jumping on this. It's a fairly expensive proposition to put that technology in a vehicle and there's no certainty around the revenues associated with it," said Rick Lee, executive director of competeing satellite radio services for GM unit OnStar.