In a strange change in global fortunes, it appears the world is going to rely on the US to keep the global economy growing - at least in the short-term. Now, 2015 global growth is projected at 3.1 percent, 0.3 percentage points lower than last year and slightly below IMF forecasts. Overall, this should be just enough to keep the global lubricants business growing in volume terms, a view clearly supported by research from Transparency.
While the VW Emissions scandal has so far only had a minor effect on China's light vehicle market, the broader impact may be felt in the longer-term. Some analystst are estimating the cost to the automaker could be as much as €78bn ($86bn some $32bn more than BP has paid for Deepwater Horizon.
There is speculation this would make VW a target for new entrants into the cars market, such as Google or Apple, and other software producers are already finding ways to reveal real-time fuel economy data. Yet, astonishingly, the EU has decided to water-down its emission rules!
The recent UEIL conference continued to highlight the increasing complexity and pressures on the lubricants industry. While the US may now take on the mantle of pushing lubricants specifications towards the ultra-low viscosities of 0W-16, 0W-8, bio-degradable base oils also have a significant role to play.
With the kind permission of Biosynthetic Technologies' Allen Barbieri, his UEIL presentation is now available as the latest OATS White Paper, offering a fascinating insight into the dramatic impact biolubes can make to engine components. But it will still be some time before they become fully commercialised.
Meanwhile OATS clients who have now implemented the new Product Manager solution are seeing demonstrably improved performance, shorter updating cycles and lower maintenance effort. All part of OATS service to enable you to “do more with less”. We look forward to discussing with you the transition arrangements for your sites.
As always, to comment on anything you have read this month or find out more about OATS products, simply contact Diana Shen for China-based enquiries. For global information, contact us by e-mail or follow our updates on social media via Twitter, Facebook, LinkedIn and Google+.
Sebastian Crawshaw
Chairman