The world economy is waiting. As the US, China and India power forward in terms of GDP and jobs growth, Europe - with the exception of the UK - is transfixed by the problems at the margins, turning them into the centre of events.
The economic challenges
Once again the spotlight is focused on the Greek economy, as the new government takes the view that austerity medicine is precisely the wrong treatment for the nation's problems. Today's Greek economy has shrunk as much as the US economy did in the 1930s - some 25% - and tensions continue to mount as Greece seeks a debt solution that will meet approval from its many creditors.
When former Chairman of the US Federal Reserve, Alan Greenspan says he expects Greece to leave the Euro, there has to be a serious probability that the 'Grexit' that was averted a few years ago will now come to pass. Personally I continue to support the argument that a currency split into the Neuro and Seuro (Northern Euro and Southern Euro) would be the best solution.
The Ukrainian crisis has all the hallmarks of the 1930s as well. The current peace initiative stands comparison with Munich in 1938. Sanctions are taking a toll on the both the Russian and the big European economies. Like Europe, the issues at the periphery are holding a vital sway on the centre.
None of this is good for economic confidence. But European car sales finally seem to have ticked up slightly and there is cautious optimism for the rest of 2015. We have to hope that the slow de-leveraging of European debt, and the economic stimulus provided by the lower oil price, will allow growth to pick up too.
Fruitful lubes initiatives
In the lubricants business the various quality initiatives are beginning to bear fruit. VLS (Verification of Lubricants Specifications) is now getting a steady flow of complaints which are being processed and resolved in an exceptionally efficient manner, with the focus being entirely on the non-compliant lubricants.
Some products have been withdrawn and steps taken to revise and update product documentation. Senior industry insiders are claiming that “lubricants procurement processes are already being influenced”. Congratulations are certainly due to UKLA for driving this change. Hopefully, the results from FSQ in Germany and the ATIEL initiative will be as effective in eradicating unacceptable market practices.
Cars make a connection
The tectonic plates of the automotive industry are continuing to shift. Many of the major car companies are increasing their investments in Silicon Valley and in Europe, as the challenge to meet the demands for greater mobility are resolved by the 'connected car'. This means software and electronics are becoming an increasingly critical part of the automotive industry and the value of the car.
The overall look and feel of connectivity solutions is also gaining in importance This is one of the key elements of OATS' earlFUSiON platform, allowing us to provide enhanced data performance and increase adaptability and connectivity of internal and external information sources to our clients and their customers.
We look forward to continuing to share with you the exciting new features being developed from earlFUSiON that will enable you to do so much more with lubricants data. To find out more, or comment on anything you have read in this month's Bulletin, simply contact us bye-mail or follow our updates on social media via Twitter, Facebook, LinkedIn and Google+.
Sebastian Crawshaw
Chairman - OATS