Bang & Olufsen, the high-end audio and video company, just launched a new sound system. It has 14 speakers, costs $6,300 -- and it's for your car.
The company's first entry into the car-audio market is one salvo in a larger push by a beleaguered auto industry to outfit a wide range of vehicles with high-quality sound. Instead of installing basic no-name systems, car companies are increasingly working with marquee stereo brands to offer products that rival top-shelf home systems. And manufacturers aren't limiting their efforts to swanky models such as BMWs and Lexuses. They are trying to convince owners of even modest Dodge hatchbacks and pickup trucks that they need stereos with eight-inch subwoofers.
There is a dizzying array of new options. The 2007 Lexus LS 460, which hits showrooms this fall, will have a new surround-sound system from high-end home stereo brand Mark Levinson with 19 speakers. (That's eight speakers more than the previous LS and the most on a Lexus vehicle to date.) The stereo also can copy and hold up to 4,000 CD tracks on an internal hard drive. Last month, Ford Motor Co. announced a new sound system from THX Ltd. with 14 speakers and 600 watts of amplification will be available on the 2007 Lincoln MKX crossover. It is already offered on the 2006 Lincoln Zephyr. (The old Lincoln THX systems had between 264 and 300 watts of power and nine to 10 speakers.) DaimlerChrysler AG's new 2007 Dodge Caliber crossover (which has a starting retail price of just $13,895) comes with an optional nine-speaker Boston Acoustics-branded sound system called MusicGate Power: When the hatchback door is lifted, speakers can swing down and face rearward for tailgating. (Price: $400 to $495.)
"Who would have thought that a midsize pickup truck would have needed a subwoofer?" says Cole Quinnell, spokesman for the Chrysler Group. The 2006 Dodge Dakota and Durango pickups now feature optional higher quality speakers and eight-inch subwoofers.
The emphasis on sound comes as car sales drag. Last summer's employee-pricing offers caused many consumers to buy a new vehicle earlier and higher gas prices have put a damper on sport-utility-vehicle sales. While car sales rose last month, much of of the increase was due to bigger sales to so-called fleet customers like rental-car companies and corporations, which offset declines in sales to consumers.
As a result, auto makers are using their new audio offerings as marketing tools to differentiate their brands. By collaborating with specific home or car audio companies, they hope some of the sound-system brand's cachet will rub off on their vehicles and spur sales -- or at least provide extra revenue from those vehicles they do sell.
Often, customers have to pay quite a bit extra for the most premium sound offerings. While Lexus has not yet announced pricing for the Mark Levinson product on the LS, a similar new 14-speaker Mark Levinson surround-sound system on the 2006 GS starts at $1,250 and on the 2006 IS, at $940. On the 2006 Lincoln Zephyr, the new THX sound system starts at $995 and the Dodge Caliber's new system costs from $400 to $495 depending on the model.
Consumer interest in high-end car stereos is rising, as iPod addicts become used to being in a permanent music bubble and as worsening traffic causes people to spend more time in their cars. Paul Raff, a 39-year-old television writer from Santa Monica, Calif., says he barely listens to music at home anymore and instead, listens to it "almost exclusively" on his 45-minute commute each way to work. That's why Mr. Raff plans to opt for the premium-sound option when he buys a new car this fall. "I do an exorbitant amount of commuting so why not have the best sound system," he says.
Some of the new systems are compatible with iPods. Chrysler Group now provides the ability to play and control iPods through the car's audio system in most of its 2006 models. Audi plans to also come out with an iPod interface for its new sound system within the 2006 calendar year.
Car companies say a majority of customers are buying the new audio options. Speaker and amplifier company Rockford Corp. says the take rate has been around 75 percent for a new Rockford Fosgate-branded sound system available on the 2006 Mitsubishi Eclipse as part of a $1,500 option package. The system consists of nine speakers including a 10-inch subwoofer. A similar sound system will also be available on the 2007 Spyder model.
Likewise, Hyundai Motor Co. estimates the take rate for a new optional Infinity audio system on its 2006 Azera is 55 percent, similar to that for a sunroof. The new Azera audio system has 10 speakers in eight locations, the most Hyundai has ever integrated into a vehicle, and is available as part of $1,500 and $2,500 option packages.
While the new systems' popularity is good for car makers, it isn't so great for manufacturers that just sell audio equipment in the so-called aftermarket. According to NPD Group, about 14.5 million aftermarket car-audio units were sold last year, flat from 2004 and down from 15.3 million in 2003.
For consumers, there are advantages to buying a system directly from the car manufacturer. Those systems are covered under warranty and require less installation and additional insurance policies. But, car-maker options generally don't have speakers as big as can be found on the aftermarket. Rockford says its average aftermarket customer has two 12-inch subwoofers that deliver thousands of watts of power, compared with the eight- to 10-inch subwoofers with 350 to 650 watts in Rockford Fosgate-branded systems offered by car makers.
The new souped-up systems are likely to attract the attention of thieves, too. Stereos have always been vulnerable to theft, but the new systems' high price tags will likely make them more so. Car stereos today do have security built in that causes the stereo to stop functioning if it is removed, but some professional thieves have figured out how to disable the security feature.
Manufacturers say the new systems provide more sophisticated surround -- and often home-theater-like -- sound to the vehicle and are able to create surround sound for both front and rear passengers. Additional speakers can also help decrease distortion and better represent and distribute the different frequencies of sound, say letting separate speakers handle a woman's voice and a powerful bass. Some systems can also play formats like DVD audio, which are encoded to play in surround sound, and feed the sound to the appropriate speaker.
The new Bang & Olufsen system, which will be offered on Volkswagen AG Audi's new 2007 Audi A8 and S8 models, has small speakers in the front of the vehicle called "acoustic lenses" that help direct the sound 180 degrees to give everyone in the vehicle the same sound experience.