Is it true that Sirius will be the only factory installed option available? If so, why? Sirius blows.

Check out the "NEWS" section for the press release. If you absolutely need XM, I would think you can put in the XM module from someone with an 05/06 model ...

but what the CUSTOMER wants (what a concept). I believe that XM outsells sirius in the market. So, why in the world would Audi sign some kind of exclusive contract with Sirius? The message I get is that they care more about their own interests with satellite radio then in what the customers want.

I don't think it's that easy - first to find someone to give up their XM module, and second to actually install it so it works.

What may seem like a minor inconvenience to some, is actually a big deal to others. Like asking me to give up DirecTV for Dish or cable.

They should try to allow the most options to the buyer, not limit them to something they may not wish for...

Next thing you know, they'll insist on beta-max players in dash... :)

Will this be an option? If so, it will mitigate to some extent the lack of XM, though without a clean way to integrate an i-Pod or MP3, the 2007's will really be falling behind the Japanese (Acura, Lexus, Infiniti, etc) in interior technology options. A shame, and I'm sure a non-starter for some potential buyers. What fool at Audi negotiated this deal?

no XM - no deal (and I meant it). It seems that all of the new stock coming in has only Sirius. They found an XM unit in the parts department so I was able to buy the car.
There is just something about this issue that ticks me off. It sends the wrong message to customers.

Seems all the German's are going to Sirius for some stupid reason - XM not available on BMW or MB for 2007. I think they all will be (unpleasantly) surprised that something as seemingly trivial as a satellite radio provider will break the deal for some folks.

GM and Honda own sizeable pieces of XM radio. This may by influencing the decision of some of the other manufacturers. I believe that Ford and its sister companies never offerred XM in any of its cars.

So they'd rather give away market share of XM? Makes no sense because people will never choose GM or Honda over Audi, BMW or MB - different customer base. And XM is not stupid - they could have outbid Sirius all day if they really wanted to or were given sufficient opportunity. Even looking at it from the German perspective, there is no way they are naive enough to believe that by cutting off an additional source of potential income to GM or Honda, it will increase their own sales or market share.

Bad business and it makes no sense.

So, Audi isn't alone in offering only Sirius. Yeah, it sucks to have less choice but it's cheaper and simpler for manufacturers to cut options. If Audi picked XM only, I'm sure some Sirius fans would be pissed. I have XM BTW but really didn't have a preferrence between XM and Sirius.

Circuit City in Lake Grove, NY sells 20 Sirius satellite radio units for every one XM satellite radio unit. However, Sirius is losing more money than XM because Sirius is paying Howard Stern $500,000,000 a year to be with them. Howard Stern is also the reason Sirius outsells XM significantly right now.

cares who owns a piece of who or who bids what. I can tell you that I absolutely would have not bought Audi over this issue. It is, to me, pure arrogance on the part of Audi. I do not care about their bidding wars over whose radio gets into their precious cars. There are a whole lot of excellent automotive choices out there. It is the arrogance on the part of VW/Audi that really gets my back up.
And, I bet that I not the only one with this issue.

are installed? It's is a very simple "no brainer" installation. There are now probably 100's of options - one more is not an issue. It's all about the CUSTOMER.

Unfortunately, Mercedes, BMW, Jaguar/Land Rover/Volvo/Aston Martin, and Audi all have multi-year exclusives with Sirius, so it's a little too late to do anything. Personally, I value the driving experience more than the radio, but everyone has their preferences.

Music choice is an integral part of the driving experience....

Sirius market share is currently 54% to XM market share of 46% and Timbilt is actually correct that Sirius has been selling more than XM of late - most of that is driven by new OEM auto contracts and the recent launch of Howard Stern - but that is besides the point. I believe the sat radio companies may be holding the automakers hostage now that the sat radio product has taken hold in the market - they may be forcing the auto makers to choose one or the other but not both. If so, this is a big problem in my opinion. XM will catch up in market share over the next 2 years as it just signed exclusives with Toyota, Hyundai and Nissan and Oprah is launching her show soon. Then again, Sirius just signed up Daimler/Chrysler and Ford.

Whichever way these wars end up going, we as consumers get the short straw by having no choice.

So Toyota, Lexus, Nissan, Infiniti and Hyundai will no longer offer Sirius as of MY2007 or MY2008? That sucks. I bet those brands have a lot of customers who are Howard Stern fans.

Correct - at the end of the day, most market analysts believe XM & Sirius will have about a 50/50 market share.

There are probably more women driving those Japanese cars and they will likely prefer Oprah to Stern.