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These types of antenna have poor reception, but should pickup local channels. Check the back of your receiver to make sure the coax is pushed all the way in, and hasn't fallen out. For better reception you could replace the aerial with a mounted aftermarket one. Hope this helps.
I would suggest installing what is called a filter capacitor.You can get these at most car audio shops or a electrolytic capacitor rated at 16v or higher and around 30uf (the capacity is not very important) you connect it from the Positive to the Negative on the radio. The idea being a capacitor will allow the A/C current (noise) to pass through to ground without going into the radio and this is usually the cause of poor reception.
Another possible cause could be simple a poor quality antenna, some manufacturers are going cheap on the antennas since most people don't listen to the radio anymore. You could try to screw an antenna off of a different car onto the base on this one and see if that clears up the problem, they are a some-what universal thread.