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GM cuts option price for XM Radio

New pricing for the factory-installed satellite radios will be seen on most 2007 models.

General Motors has reduced the option price of factory-installed XM Satellite radios from $325 to $199. XM has an exclusive deal with GM, with the option offered on more than 50 GM models, according to the company. GM announced the price change on Wednesday and said the new option price will appear on most 2007 models. Some GM vehicles will also come standard with XM Radio.

A GM spokesman said in a statement that the price reduction was due to the "economies of scale and engineering efficiencies brought by the rapid pace of XM Radio installation across GM's product lineup."