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April 2007 U.S. Auto Sales And SDARS Relationships
May 2, 2007
Sales are in for April 2007. The purpose of this information is to outline vehicle sales and OEM partners. The numbers represented do not equate to satellite radio installs. This information can be helpful in understanding potential insdtalls, as well as offer a glimpse of the overall OEM channel. By example, Sirius stated that their exclusive relationships will have about 34% penetration. If this holds true, then about 722,000 vehicles have been equipped with Sirius so far this year. For XM, GM is targeting 1,800,000 installs and Honda 850,000 for 2007. CLICK CHARTS TO ENLARGE
5/02/2007 04:28:00 PM
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Something is wrong here - these numbers are all messed up. It looks like you are giving equal weight to XM's factory install deals (Nissan/Toyota) versus SIRI's dealer install arrangement.
By May 02, 2007 10:27 PM
This is odd. Almost all Nissans will be factory equipped with XM over the next 2-3 years (and all Infinitis are factory XM standard starting late this year). And some Lexus models too. You cannot order factory SIrius in either a Nissan or a Toyota product. And nobody who gets a factory equipped vehicle is going to replace it with some aftermarket crap (after paying who-knows-howmuch for the XM unit).
Don't you think it a little strange that you treat these as the same and then somehow conclude that Sirius has "deals" with 64% while XM has deals with only 60%?
Isn't it time for everyone to get past Sirius attempt to claim a deal with Toyota and Nissan where none exists?
The best way to respond to this is point by point:
By SSG, at May 03, 2007 9:16 AM
1. The numbers are not messes up. These numbers were provided by each auto manufacturer. If you take exception to them, I would suggest that you take up the issue with the auto manufacturers.
2. With regard to a factory deal vs. a port deal, is there any evidence to suggest that at THIS POINT IN TIME one is providing more installations than another? Simply stated, with some of these deals, the consumer makes a choice…..XM, Sirius, or none. Seems like a pretty good situation for consumers.
3. You bring up Nissan 2 to 3 years down the road. This report represents CURRENT OEM SALES and CURRENT SDARS/OEM RELATIONSHIPS. SSG will deal with 2010 auto sales in 2010. When Nissans Infiniti Brand no longer has Sirius available as an option, the data will reflect that accordingly.
4. A Toyota consumer that wishes to have Sirius can have Sirius. If they wish to have XM they can have XM. If they wish for neither, they can do that as well. Looking at the popular Toyota Camry, for example, the Toyota website lists both Sirius and XM as available accessories. You can refer to that by clicking on this link - http://www.toyota.com/camry/accessories.html - You can also clearly see that Toyota, Nissan, Lexus, and Infiniti are ALL listed as partners on the Sirius and XM sites. The Sirius partners are at this link - http://www.sirius.com/servlet/ContentServer?pagename=Sirius/CachedPage&c=Page&cid=1043186280865
The XM partners are at this link - http://www.xmradio.com/whatisxm/inyourvehicle/index.xmc
If you want to deny that there is a relationship with both Sirius and XM that is quite all right, but my suggestion is that you contact Toyota, Lexus, XM, and Sirius, because for some reason they all seem to have information that shows something that differs from your opinion.
5.With Nissan, I would lean heavily towards them doing a pretty big factory install program at some point down the road. However, we are dealing with the landscape TODAY, not in 2010. Nissan as well as Toyota use antennas capable of receiving either XM or Sirius. Nissan also uses a radio from Visteon that makes switching between the two services a very simple process. You can see that radio on the Visteon website. Looking at the popular Maxima model, Nissan’s own website lists both Sirius and XM. You can refer to that at this link - http://www.nissanusa.com/maxima/specifications.html - Simply click the audio tab. The links on the Sirius and XM websites listed in point #4 also illustrate that both systems are available.
6. Your statement about the after market radios being “crap” is curious, as is the need to pay for and replace an XM unit. First off, these radios are genuine Toyota and Nissan parts and accessories. If you feel that Nissan and Toyota are using “crap”, I would suggest you take that up with them. In many cases, such as the Visteon units, it is a simple box to make the in-dash radio an XM radio or a Sirius radio.
7. The chart and data are what they are. The April data shows Sirius has exclave deals with 40.41% of the OEM sales as of April 2007. It shows XM has exclusive deals with 36.00% of the OEM sales as of April 2007. It then shows that Sirius has deals with 64% of the OEM sales as of April 2007 and XM has deals with 59.59% of the OEM sales. It is really a simple process and simple math.
7. Lastly you request that people should, “get past Sirius attempt to claim a deal with Toyota and Nissan where none exists?” Again, I would suggest that you visit the websites of these manufactures, as well as the Sirius and XM websites. Further, I would suggest that you swing into a few dealers and ask them. Perhaps it is time that you look at what is right in front of you.
In closing, I will state what I have always believed. I am not a fan of exclusive OEM deals, and feel that consumers should be afforded a choice as to what service they get. I will also say that having “pull” subscribers (where the subscriber is requesting the product) is better than “push” subscribers (where the product is pushed to the consumer. No auto manufacturer will ever dictate to me what satellite radio service I get, nor what cell carrier I use. I will get the product I want.
I hope that all of this gives you some clarity in this data, as well as the status of the OEM world and what OEM deals exist.
Sorry, I didn't mean to confuse you.
By May 03, 2007 11:34 AM
The sales figures aren't messed up, but the way Sirius conveniently ends up with a bigger OEM percentage (when everyone knows this isn't the case) is what I was referring to.
And yes, I believe it is rather obvious that a consumer who buys a new Infiniti with XM already installed is substantially less likely to pull that device out (after having already paid for it) and replace it with a dealer installed unit. He ends up paying double for the radio, plus installation costs, and gets a lousier install to boot.
Infiniti has already announced that all their cars will have XM in the coming year. Some Lexus models, same thing. If you were not intending to distort the facts, you would be making that totally clear in your listing.
The fact is that SIRI's management is responsible for this confusion because they have intentionally created it in the minds of shareholders. Many of you still believe that Sirius and Toyota entered into some kind of business deal even though it has become apparent that Toyota will ultimately be available only with XM from the factory. And yes, factory installs are much more significant than any other arrangement, and those of us who have followed this industry for a while recognize it.
I am not confused at all.
By SSG, at May 03, 2007 12:43 PM
The data is dealing with the here and now.....not auto sales in three years or next month. The data simply represents the current situation with SDARS and OEM partners.
I had suggested that you look a bit deeper into several items, but it appears that either you do not want to, or didn't.
Your assertion regarding pulling devices out simply is not how the situation is addressed. With an interoperable antenna, a simple switch of a box. you can refer to the Visteon website (Nissans supplier) for additional information. Thus, at most a nissan consumer is paying for a box, not an entire head unit.
Yes, Infiniti as well as Lexus have made press releases about XM installation later this year. When that time comes, the data will reflect it accordingly. Infiniti makes up less than 1% of the market....lexus less than 2%. There is no distortion here.....these are APRIL 2007 sales figures and SDARS relationships. If you want October 2007 figures, Miss Cleo and her crystal ball or the Great Kresgan with his magic hat might be your best bet.
Everyone is pretty clear on the Toyota relationships. XM has factory installs, and sirius has port and dealer installs. This is not rocket science. Port installs with Toyota are very common. leather seats, wheel covers, air conditioners and stereos are very common port installed items. the difference between a factory install toyota unit and a port installed one are transparent to the consumer. Again, I would strongly suggest that you swing by a few dealers.
This is not in any way taking away from the importance or ease that a factory install deal generates. those of us that have followed this industry for a while understand that while a factory install is wonderful, there are also substantial costs attached to it. we further understand that the value of a pull subscriber far outweighs a push subscriber.
Setting all of that aside, the current OEM situation is what is posted. The manufactures list Sirius and XM and Sirius and XM list the manufactureres. I would again suggest that if youy feel this is not the case that you call Toyota and Nissan and inform them that they correct their websites.
When faced with you telling me Toyota and Nissan don't sell Sirius....and toyota and Nissan having it on their websites and at the dealers, i think I will lean towrads believing Toyota and Nissan.
Thanks for your readership.
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