Far too dramatic IMO.
Did CD and MP3 players kill radio in car? No.
Radio as being the primary source of audio-only data has been long dead, and the audio-only source has also seen competition of TV, RL (due to easier & cheaper forms of travel), and the Internet. In that sense even TV is dead thanks to the Internet. Both deaths are relative, not absolute.
Radio is however very much alive in the sense that audio-only is alive. Just look at streaming services such as Spotify, and the diversity possible with it. You can make your own playlist, follow someone else's, or collaborate. You can have multiple playlists, too. For a mere 10 EUR a month you even get rid of all the advertising (15 EUR for family pack of 6 people). I'm not advertising for Spotify here; its just one of the many options available and I happen to be familiar with it.
My Nokia N900, an experimental device from 2009, had a FM transmitter on it. One could tune in on car audio, to receive the signal send from the Nokia N900. One could power it up with the car's charger.
We're now in 2017, 8 years down the line. Its not far fetched to have a FM to Bluetooth or FM to WiFi converter. Exactly for situations where backwards compatibility is desirable. It might also be worth it to upgrade the car to more recent standards e.g. an Android mini computer made for the car.
> OK, so you switch off a completely fine technology with billions invested, rendering useless multi-millions of fine working radios.
Keyword: Maintenance. It costs money.