Ford Motor Co. said Monday it would offer Sirius satellite radio in more vehicles, as Sirius fights to catch up with industry leader XM Satellite Radio Holdings Inc.
The stock of Sirius Satellite Radio Inc. gained more than 3 percent in morning trading.
Ford, the No. 2 U.S. automaker, is targeting up to 20 of its vehicle lines for factory installations of Sirius over the next two years, and plans to expand the availability of Sirius as a dealer-installed option this fall, the companies said.
Sirius, with more than 600,000 subscribers, lags behind XM Satellite, with about 2.5 million.
The installation of satellite radio in new cars is seen as an important growth area for both Sirius and XM, which charge subscribers a monthly fee for commercial-free radio. Sirius recently got a shot in the arm after controversial radio host Howard Stern said he would jump to Sirius from traditional radio, beginning in 2006.
Overall, Sirius expects to reach 1 million subscribers by the end of 2004, citing increased demand for satellite radio.
Sirius stock gained 12 cents to $3.82 on Nasdaq. Ford gained 8 cents to $13.33 on the New York Stock Exchange.