"Acura and Honda have helped pioneer the application of satellite navigation systems in the auto industry. OnStar and XM Satellite Radio provide us with an opportunity to offer state-of-the-art, mobile communications services that will enhance the driving experience for our customers," states Tom Elliott, executive vice president of American Honda Motor Co. Inc. "We are delighted to deliver OnStar's safety, security, and information services to Honda and Acura drivers," offers Chet Huber, president of OnStar. "This agreement is evidence of our aggressive strategy to expand the OnStar subscriber base beyond GM brands." "XM's satellite connection to the vehicle provides the potential for additional in-vehicle services," says Hugh Panero, XM's president and CEO. "This agreement reinforces our commitment to work with car manufacturers to develop future services that meet the needs of their customers."

The agreement to offer OnStar mobile communications services in Honda and Acura vehicles is part of the relationship between GM and Honda that began in December 1999 when the two automakers announced plans for a powertrain cross supply arrangement. General Motors will use a Honda engine and transmission for a vehicle under development, and Isuzu, a GM group company, will supply Honda with diesel engines for the European market. At the time of that initial agreement, GM and Honda announced plans to discuss collaboration on future technological and business opportunities of mutual benefit. The agreement includes no equity stake by either company in the other, and each will continue independent technology development activities.

Link for more info: www.xmradio.com