Saturday, July 22, 2006
DaimlerChrysler to Invest $100 Million in Sirius Satellite Radio. Automaker to Install Satellite Receivers in Its Vehicle Lines Including Heavy Trucks
DaimlerChrysler and Sirius Satellite Radio (Nasdaq: SIRI) Monday announced an agreement to bring satellite radio to DaimlerChrysler customers beginning next year.
Sirius Radio will provide DaimlerChrysler customers with seamless coast-to-coast coverage of up to 100 channels of programming, including 50 channels of commercial-free music and up to 50 channels of news, sports and entertainment for a monthly subscription fee of $9.95.
Under the terms of the agreement, DaimlerChrysler Corporation will purchase $100 million of Sirius common stock and exclusively factory-install Sirius receivers in DaimlerChrysler cars and light trucks.
The arrangement includes all DaimlerChrysler brands sold in the United States, including Mercedes-Benz, Chrysler, Jeep, Dodge, Dodge Truck, as well as Freightliner and Sterling heavy trucks.
DaimlerChrysler and Sirius will also work together to develop innovative telematics functions using the Sirius national digital broadcasting system. These applications may include a range of wireless security, convenience and navigation services for DaimlerChrysler vehicle owners. This is a further step in DaimlerChrysler's strategy to create and develop technologies to better serve its customers.
DaimlerChrysler is North America's third largest auto manufacturer, selling more than 4.8 million vehicles worldwide per year. Freightliner is North America's largest heavy-duty truck manufacturer -- and the first truck manufacturer to agree to install satellite radios in commercial vehicles.
"We believe Sirius Radio has a superior system which will offer our vehicle
owners tailored, commercial-free broadcasts across the country," said Jim Holden, President, DaimlerChrysler Corporation. "We see this arrangement as part of DaimlerChrysler's on-going strategy to expand our business beyond the traditional automotive manufacturing and sale. This is all about DaimlerChrysler bringing new value and services to our Chrysler, Jeep and Dodge customers, and providing innovation in every area of their automotive experience."
"Luxury car owners expect the most advanced performance, information and entertainment technologies," added Ken Enders, Vice President of Marketing for Mercedes-Benz USA, Inc. "We believe Sirius Radio will provide our Mercedes-Benz clients with a revolution in audio information and entertainment."
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