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Posted on ZDNet News: Sep 26, 2007 8:05:00 PM

Reuters Logo Ford Motor on Wednesday said it would offer high-definition digital radio on nearly all 2008 model year Ford, Lincoln and Mercury vehicles as a dealer-installed option.

Ford said digital radio could also be installed on earlier models from 2005, 2006 and 2007.

U.S. radio operators are working aggressively to promote HD radio, which receives over-the-air terrestrial stations with CD-quality sound and multiple new-program formats, in an effort to better compete with ever-increasing digital music options.

The industry has pledged to spend $250 million on marketing through the HD Digital Radio Alliance.

Hyundai, BMW and Ford-owned, Britain-based Jaguar had previously announced plans to offer HD radio. General Motors and Chrysler Group have not yet committed to the devices.

RBC Capital analyst David Bank said the announcement by Ford was a step in the right direction, but HD still had a way to go to catching on with automakers and consumers.

"With a dealer-installed option, we're not sure how hard dealers will push it or what incentives they are receiving. A factory-installed standard is what would take HD radio into the next phase and really increase penetration," he said.

Story Copyright © 2007 Reuters Limited. All rights reserved.

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