Thanks @Doug4907 for highlighting this and making people aware and letting Volvo know its important to you.
"I would lay blame to the ABC, and in turn the feds for cutting funding, for only having AM in Melbourne, rather than auto makers not wanting to spend time incorporating AM infrastructure and UI into their cars."
ABC are on digital and internet already :) - to say its a funding problem is way off the mark. Broadcasters are maintaining AM to provide regional coverage as Australia is a big place and DAB+ and mobile coverage are never going reach a lot of places. DAB failed in Canada for this reason although it has replaced AM and FM in Europe where I expect the decision was made.
"most of it's sales would be in the parts of Australia that represent 505(sic) of our population (Sydney and Melbourne)"
Yes - it would seam they are not catering to customers elsewhere - or those who travel away from the Melb-Sydney where phone and DAB coverage are unreliable - especially during the fire season. I am a heavy user of online radio when it works, but have also relied on AM when it was really needed.
Having replaced bought two MY19 cars recently, I would not have made the same choice with MY21 offerings. It will be interesting to see which other brands are next.
"....... one presumes something so basic, something one takes for granted now because an AM radio was standard equipment in everything for the last 40 years, is already going to be there."
or are taken in by the sales and marketing hype about its availability via digital or streaming for the emergency broadcast function - which is bordering on misleading.