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News of  May 30, 2000


Honda, GM's Onstar And XM Satellite Radio Agree To Offer In-Vehicle Services To U.S. Drivers

TOKYO - 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 United States. In addition, Honda, OnStar and XM Satellite Radio have also agreed to jointly develop opportunities for future telematics and data applications. American Honda Motor Co. Inc. and XM Satellite Radio are also negotiating to provide digital satellite radio service to Honda and Acura customers in the United States.  

"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.  

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 of mutual benefit. The agreement includes no equity stake by either company in the other, and each will continue independent technology development activities.

(May 23, 2000)


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