By Brandon Matthews
In a press release issued this morning, Sirius XM Radio (SIRI) announced the addition of Chrysler Group LLC to its list of Certified Pre-owned vehicle program partners. Dealers include more than 800 Chrysler, Dodge and Jeep dealers nationwide. Under the program, Certified Pre-owned Chrysler Group customers will receive an introductory three-month trial subscription of the “SIRIUS Everything” package upon the purchase of all SIRIUS-equipped Chrysler Group LLC Certified Pre-owned Vehicles.
The company also reaffirmed in its press release that Chrysler Group LLC will continue to offer Sirius as a factory-installed feature on most new Chrysler, Jeep and Dodge vehicles sold in the United States, each with a one-year subscription of Sirius included. Putting aside any doubts as to the future relationship of Sirius XM and Chrysler since being taken over by FIAT, the company states:
Chrysler Group LLC’s launch of a trial offer of SIRIUS in its eligible Certified Pre-owned Vehicles is a natural outgrowth of its widespread adoption of factory-installed satellite radios in new Chrysler, Jeep and Dodge vehicles. The special Chrysler Group CPOV program also demonstrates the value Chrysler Group places on providing satellite radio to its customers and its continuing commitment to its relationship with SIRIUS XM.
Recently, Sirius XM Radio CEO Mel Karmazin announced during a Liberty Media (LMDIA) investor conference that a new program was to be imminently announced, and as we reported on Satwaves, Mr. Karmazin seemed very excited about the prospects of certified preowned programs adding substantially to Sirius XM’s subscriber base and revenue streams. The company offers incentives on the life of the vehicle, to the manufacturer, in order to promote wider distribution of the Satellite Radio service.
Position: Long SIRI
Another positive step on the road to recovery for XM-Sirius. I hope that this program is offered on all certified used cars going forward whatever the make or model. There is absolutely no cost to XM-Sirius to implement this program. Everything to gain and nothing to lose. It also makes the dealers happy as it’s easier to sell a car with an active subcription than a car without it.
So will the dealers be paying Sirius for the three months of service? Either way this is a win-win as the used car market has pent up demand.
Sirius XM continues to solidify relationships with virtually all significant auto manufacturers and this can only be a major plus going into the future, as the aging U.S. auto fleet will certainly need to be replaced and upgraded within the next few years. There is no question consumers will prefer satellite radio to terrestrial radio once they are exposed to the great content and seamless clarity of reception on Sirius XM, this should be analagous to the rapid growth cable TV experienced relative to standard TV reception in past years.