Ford, other automakers starting to eliminate AM radios amid transition to electric vehicles

Companies citing low usage, digital alternatives

GROSSE POINTE, Mich. – Automakers are starting to eliminate AM radios from their vehicles in the transition to electric vehicles.

In March, Ford announced that it will stop putting AM radios in their vehicles due to fewer than 5% of their radios being used for AM. Instead, they suggest that internet streaming through apps is a good alternative.

“Do we decide to keep having it just like we got rid of the 8 track, then came the cassette tape, then the DVD player,” said Mike Ramsey, an auto analyst at Gartner. “It’s logical to move away from it.”

Ford joins other automakers such as Rivian, BMW, Audi, Mazda, Tesla, Volkswagen, and Volvo in the elimination of AM radios.

“Tesla stopped offering AM radio in their cars more than a decade ago, it hasn’t had any impact on their sales,” Ramsey said.

However, some lawmakers and rural communities are pushing back.

State Representative Dave Prestin from the 108th district in Cedar River, Michigan, argues that rural America needs AM radio and wants it to stay. “On a local, state, and federal level, AM radio is the go-to when everything goes wrong,” he said.

Representative Prestin is one of eight Michigan legislators who sent a letter to Ford’s board of directors, asking them to reconsider their AM elimination program. He warns that legislation could be introduced if this trend continues.

“We’re putting all of our eggs into one basket. Sooner or later, something’s going to go wrong, and we’re going to need an alternative,” Prestin said.

Despite pushback, the industry is moving towards digital formats. However, AM radio remains a multi-billion dollar business that still provides news and information to many listeners.


About the Author

Rod Meloni is an Emmy Award-winning Business Editor on Local 4 News and a Certified Financial Planner™ Professional.

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