Vanguard, which operates National Car Rental and Alamo Rent A Car, will offer XM radio service in certain vehicles for no extra charge. Financial terms of the deal were not released.
"The rental vehicle is an ideal place for consumers to experience XM Radio firsthand, and we believe that this exposure will lead many of them to get XM for the car, the home and 'on the go'," Paul Kirsch, XM's vice president for OEM, said in a statement.
The service will be available in all 2005 model Chevrolet Cobalts, Pontiac G6s and Buick LaCrosses. Select 2005 Chevrolet Monte Carlos, Chevrolet Impalas and Pontiac Bonnevilles will also offer the satellite radio.
The new deal was struck on the heels of two separate agreements XM and rival Sirius.