The cost of keeping AM radio would come up to $70 per vehicle.
According to findings from the Centre for Automotive Research (CAR) – an organization tied with General Motors & Ford; continuing to offer AM radio could become a costly affair for automakers going forward.
Recently, AM radio came under scrutiny, with automakers hoping to ditch the old radio format, while government officials citing its necessity during large-scale emergencies. However, reports state that keeping AM radio could cost the industry as much as $3.8 billion over the next seven years. This rise in cost is mainly due to the electrification of vehicles. Reports find that electric motors emit electromagnetic interference that messes with the radio’s receivers, which affects its sound quality.
Based on the figure, when shared across the industry, the cost of keeping AM radio would come up to $70 per vehicle. This has prompted several automakers including Tesla, Rivian, VW, Volvo, Polestar & BMW to stop offering AM radio altogether (Ford also wanted to remove AM Radio, but later back-tracked their decision). To combat this, government officials have advanced a bipartisan bill mandating the inclusion of AM receivers in all new vehicles.
Reports also state that while it is technically feasible to modify the equipment and make EVs receive AM radio, it will come at an additional cost. EV makers will need to spend extra on shielding for radio cables, EMI filters and noise cancellations.
CAR, stated, “Discussions revealed that the material cost of addressing AM band interference in EVs is relatively low because mitigation measures are often necessary and implemented to support other electronic systems susceptible to EMI.”
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