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I think judging by the reviews I've read this is perfectly normal for this unit. Everything I have read about them states that the Remote does not work more than 6 inches away from the unit.
I would say this is quite a design flaw on the part of Grundig who should have realised that some stereos are quite a distance from the Steering Wheel!.
If you are unhappy with it I would suggest trying to contact Grundig Customer Services and see if they have a solution for your issue.