Ford Motor Company and CD Radio Announce Alliance
15 June 1999
Auto Maker and Satellite Radio Broadcaster to RevolutionizeIn-Vehicle Entertainment
DETROIT -- Ford Motor Company and CD Radio today announced an alliance to
bring digital satellite radio to Ford customers. Ford is partnering with
CD Radio to bring customers a revolutionary in-vehicle entertainment service
that will include commercial-free music and seamless, coast-to-coast US coverage.
Ford vehicles are expected to be the first cars and trucks in the nation
to have factory-installed satellite radio receivers. The exclusive agreement
includes all seven Ford brands -- Ford, Lincoln, Mercury, Mazda, Jaguar, Aston
Martin and Volvo.
"CD Radio has a unique system which will offer our customers customized,
commercial-free listening choices across the country at any time. This
partnership is all about Ford Motor Company being the leader in bringing new
value and services to our customers," said Jac Nasser, Ford president and
chief executive officer. "Our objective is to become the world's leading
consumer company that provides automotive products and services."
Ford intends to begin installing CD Radio receivers starting as early as
first quarter 2001. Under terms of the agreement, Ford will also have access
to individually-addressed bandwidth and will work with CD Radio to develop
specialized programming and innovative telematic/infotronic functions
exclusively for Ford customers.
"CD Radio service will bring to radio what cable networks have brought to
television, and we will deliver it to our customers first," said Mike Ledford,
executive director, Telematics at Ford Motor Company.
"We're extremely pleased that the world's most respected auto maker has
chosen CD Radio as its satellite radio partner. Our objective is to have
every car already on the road and every car coming off an assembly line
capable of receiving the CD Radio signal. Ford's decision today is a
significant step toward achieving that goal," said David Margolese, CD Radio's
chairman and chief executive. "With this agreement Ford and CD Radio usher in
a new era of commercial-free music and innovative news, talk and entertainment
radio programming for motorists across the US."
CD Radio is building a digital satellite radio system that will broadcast
up to 100 channels of music and other programming to motorists throughout the
United States. The company plans to offer 50 channels of commercial-free
music and up to 50 channels of news, sports and entertainment programming for
a monthly subscription fee of $9.95. Commercial operations are scheduled to
commence at the end of the fourth quarter of 2000. The first of CD Radio's
three satellites, which are currently under construction by Space
Systems/Loral, is scheduled for launch in January.
