Tokyo, May 24, 2000 - Honda Motor Co., Ltd. and OnStar, a wholly-owned
subsidiary of General Motors Corp. (GM), today announced an agreement to
offer OnStar mobile communications services in Honda and Acura vehicles
beginning with the 2002 Acura RL luxury sedan sold in the US. In addition,
Honda, OnStar and XM Satellite Radio have also agreed to explore potential
joint opportunities for future telematics and data applications. American
Honda Motor Co., Inc. and XM Satellite Radio are also negotiating to provide
digital satellite radio services to Honda and Acura customers in the US.
"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," said 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," said Chet Huber, president of OnStar. "This agreement is evidence
of the success of our 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," said 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 for mutual benefit. The agreement includes no equity stake by either
company in the other and each will continue independent technology development
activities.
About Honda
Honda designs, manufactures and markets automobiles, motorcycles and power
products worldwide. Honda is the largest engine maker in the world, producing nearly 11
million engines annually for its three product lines, including sales of engines to other
manufacturers. Honda also builds products in more than 100 manufacturing plants in 33
countries, employing more than 125,000 associates globally.
About OnStar
OnStar, a wholly-owned subsidiary of General Motors Corp., is the industry's leading
provider of in-vehicle safety, security and information services. OnStar uses the Global
Positioning System (GPS) satellite network and wireless technology to link driver and
vehicle to the OnStar Center, where advisors are available to offer real-time,
personalized service 24 hours a day, 365 days a year. OnStar services include automatic
notification of air bag deployment, stolen vehicle tracking, emergency services, roadside
assistance with location, remote door unlock, remote diagnostics, route support, OnStar
Concierge, and convenience services locator. New services include Personal Calling,
which allows drivers to make and receive hands-free, voice-activated personal calls from
their vehicles without an additional cellular contract; and OnStar Virtual Advisor, which
will deliver to the vehicle personalized Internet-based information such as news headlines,
sports scores, stock quotes, weather conditions and e-mail through a hands-free, voice-
activated, audio interface.
About XM Satellite Radio
XM Satellite Radio Inc., (NASDAQ: XMSR) based in Washington D.C., is developing
a new band of radio. Starting in the first half of 2001, XM Radio will package up to 100
channels of digital-quality music, news, sports, talk and children's programming directly
from its two powerful satellites to vehicle, home and portable XM-Ready radios coast-
to-coast for a monthly subscription fee.
Press Contacts:
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Honda Motor Co., Ltd.:
Hideo Sato: 81-3-5412-1512
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American Honda Motor Co., Inc.:
Mike Spencer 310-783-3165 or Jay Joseph
310-783-3396 or Jeffrey Smith 310-781-5062
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OnStar:
Debbie Frakes, 248-588-4898, Deborah.Frakes@onstar.com or Todd
Carstensen, 248-588-2844, Todd.Cartensen@onstar.com
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XM Radio:
Vicki Stearn, 202-969-7070, Vicki.Stearn@xmradio.com
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May
24, 2000