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Thursday April 9, 2009
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Finally, HD Radio is being priced right in the new-car market: free. It's now standard equipment on the 2009 BMW 7 Series sedan (starting price $80,200 and BMW 6 Series coupe and convertible ($78,200).
BMW was the first automaker to offer HD Radio and to offer it across the line, and now it's free on some models. On its more expensive cars, BMW rolls in the price of niceties such as the BMW Assist emergency calling service, leather seats, a navigation system, and now HD Radio.
HD Radio is a freebie not because BMW wants to help you ride out the recession. Here it's free for a different reason: BMW integrates the HD Radio circuitry into its latest Car Infotainment Computer (CIC)--the in-car box that typically handles the radio and CD player--so it doesn't cost much to include. On other BMW models, HD Radio remains a separate trunk-mount module and BMW tags the customer $350 for HD Radio for the privilege of hearing what the HD Radio alliance calls "free radio."
Satellite radio remains a high-bucks BMW option ($595) because it uses a separate module, although BMW notes that the price includes a year of service, worth about $125 if BMW paid Sirius' list price. Never mind that you can buy a standalone satellite radio tuner for $50 if you don't mind a rat's nest of cables marring the interior of your shiny new car.
Look for BMW and other automakers to roll more electronics into the core infotainment computer. As that happens, features such as satellite radio, HD Radio, USB music connectivity, and Bluetooth handsfree calling, will add little noticeable cost to the automaker's bill of materials (BOM).
What it means: HD Radio gets a meaningful victory in the automotive sector because it's finally free - starting with $80K BMWs.
Posted By:
Bill Howard
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