XM Satellite Radio has signed an agreement with Visteon Corporation for the production of car audio systems able to receive XM's satellite radio broadcasts due to begin in the continental United States this summer.

The digital radio service will allow vehicle occupants to listen to around 100 new radio channels from coast-to-coast, covering such formats as music, news, talks, sports, entertainment and children's programming, 24 hours a day, seven days a week.

XM Satellite Radio has established a transmission network consisting of studios in Washington D.C., two geostationary satellites positioned above the east and west coasts of the USA and local relay networks.

Under terms of the agreement, Visteon and XM will jointly design, develop, manufacture, market and license XM satellite radio technology radios.

In addition to the claimed excellent sound and reception quality, the satellite radios will display additional information including the channel name and number, artist and song title.

The service will be sold much like cable or satellite TV with users buying the special radio unit and aerial and paying $US9.95 a month to access the satellite transmissions.

Vehicle manufacturers including General Motors, American Honda, Freightliner and Chevy Trucks have agreed to offer XM radios as factory-fitted options and Sony, Alpine and Pioneer are among the consumer electronics manufacturers gearing up to make them.