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There's lots of possible reasons. The FM receiver portion of the radio is separate from the AM Band receiver, pre-amp, and amplifier sections of the radio. The FM receiver may have simply failed, as well as the CD player portion of the radio.
If your car is out of warranty, there's a lot of options available to replace your radio. Check out the stuff ... available everywhere, from Wal-Mart to your favorite Car Audio independent retailer, and they all offer installation services. Or try to locate an OE radio from a wrecking yard with the same radio (in working condition) as the one in your car.
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