US car-makers claim AM radio will cost billions to keep in electric vehicles

A new report sponsored by some of the largest automotive brands in the US has claimed car-makers could be forced to spend billions of dollars by 2030 if they are required to keep AM radio functionality in their vehicles.

More electric cars are being sold without AM radio in the US and Australia, with car-makers claiming the interference caused by electric motors can disrupt the signal.

In May 2023, US senators introduced a bill to mandate the broadcast technology – which can act as a reliable back-up for emergency alerts during natural disasters in remote areas where there is no phone signal – in all new cars, which is yet to be legislated but is receiving bipartisan support.

MORE: Renewed calls to mandate AM radio in cars as the simple but reliable tech disappears

Automotive News reports the Center for Automotive Research (CAR) released a study last month which claimed US car-makers may end up spending up to $US3.8 billion ($AU5.9 billion) combined by the end of the decade to ensure AM radios work in electric vehicles.

While the interference from electric motors can be reduced through shielding cables and noise cancellation, an unnamed car-maker told Automotive News these costs could amount to $US50 to $US70 ($AU78 to $AU109) per car.

"These costs can be avoided by deleting analog AM radio from vehicles and providing consumers with alternative products for in-vehicle audio content," CAR’s report said.

However, while CAR is an independent body, the report was released in partnership with the Alliance for Automotive Innovation (AAI) – an automotive industry lobby group which lists almost all major car-makers in the US as its members, as well as digital media provider Sirius XM and numerous tech giants.

As reported by Automotive News, AAI CEO John Bozella criticised the proposed legislation in an online blog post, questioning AM radio’s place as a safety technology.

“Requirements for airbags, brakes, side impact protection, seat belts and other life-saving vehicle safety systems? Yes,” Mr Bozzella wrote online.

“But forcing automakers to install analogue AM radio tuners in all new vehicles – including electric vehicles? The government has never gone there before.”

As previously reported by Drive, there are also a number of petrol and diesel cars currently on sale in Australia and overseas without AM radio.

Tesla, Volvo and Polestar do not offer AM radio across their Australian line-ups, while certain Peugeots (308, 508 and 2008), Citroens (C4, C5 X and C5 Aircross Sport) and Volkswagen Group models (Cupra Born, VW Arteon, T6.1 and Caddy) are also sold locally without the simple-but-effective technology.

In all of the above cases, the decision to drop AM radio appears to be a cost-cutting measure, given most similar vehicles from rival brands have retained AM radio capability.

While AM radio is perceived as outdated broadcast technology, it has a much longer range than FM radio – allowing information about life-threatening emergencies and natural disasters to be broadcast across greater distances without interruption. 

It is especially useful in areas where there is no phone signal, or where a mobile phone signal could easily get cut off.

A recent Australian Government report found AM radio – one of the oldest formats of broadcast technology – still plays a life-saving role for motorists during emergencies and natural disasters because its frequencies can travel further than other forms of communication and from fewer transmission towers.