ILMA continue to strengthen ties with UEIL but raise concerns over Dexos and ILSAC GF-5; Eastern Europe faces a motor lubes slump, consumers do it themselves in 2009 and Mack release preferred oil list.
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A delegation from the Independent Lubricant Manufacturer's Association (ILMA) attended the recent Independent Union of the European Lubricants Industry (UEIL) conference in Turkey. A presentation from ILMA's Immediate Past President, Ron Powell, formed part of the conference, with the organisation stating clear intent to look beyond the US and strengthen the relationship with its European counterpart.
However, relations were slightly more strained between ILMA and General Motors after a recent presentation by the auto manufacturer to the ILMA Board about their new trade marked Dexos engine oil specifications. Dexos is intended to apply to all GM vehicles sold across North America from 2011 with a licence fee attached. Following a clearly challenging meeting, ILMA wrote to GM to reiterate its members' concerns.
They believe that independent lubricants manufacturers would be required to create two different engine oils - more if other vehicle makers follow GM's lead - to meet general and specific specifications; and also calculate significantly higher Dexos licence costs than the standard API fees, which would be hard to explain to the consumer. They also highlighted the potential impact on the imminent ILSAC-GF5 specification.
The letter to GM follows earlier correspondence in October between ILMA and API, in which ILMA highlighted the potential collapse of the API licence programme if the ILSAC-GF5 specification was not agreed by the December 2009 deadline. ILMA warned that API could lose the support of ILSAC members if the specification is not delivered on time, leaving the door open for more motor manufacturers to develop their own standards, pushing up prices to the consumer. API's Lubricants Committee then voted to issue a ballot for immediate comment on the latest draft of the specification. Comments must be returned by 19th December, allowing only a few working days if the confirmation deadline of 31st December is to be met.
Meanwhile, Eastern European lubes manufacturers are facing equally pressing problems with the global recession taking its toll on the region. Lube Report's Boris Kamchev reported a gloomy outlook for Russian producers after a 14% drop in production over the first three quarters of 2009. Kamchev was reporting on a speech given by LukOil's Maxim Donde, in which the Russian boss predicted a further 10% slump in commercial vehicle lubes in 2010. However, there was some good news for LukOil, with the commissioning of a new $95m sulfuric acid alkylation (SAA) unit. The Bulgarian plant will produce 300,000 tons of SSA, almost 100,000 tons more than the previous unit.
Lubes forecasts were little better in Romania, where a 30% drop in the market so far in 2009 is likely to deepen by a further 10% slide in sold volumes in the early part of 2010 according to representatives of the country's largest automotive and industrial lubricants supplier, Lubrichem.
The recession may bring a glimmer of light for premium oil brands thanks to an increase in home vehicle maintenance. A survey by market research company NPD found that in the US, 70% are choosing to carry out the same or more maintenance on their vehicles in 2010, and an increasing number have already increased their oil change frequency, turned to premium oil brands and started using fuel additives to improve performance or mileage.
In the trucking sector, Mack issued a new Service Bulletin for approved oils for Mack components. As well as adding new oils to it previous lists, the latest bulletin is presented in a new format which shows EO-N and EO-O approved engine oils together, as well as including EO-M (for use outside North America). The EO-O Premium Plus list is required for engines dating from 2007 onwards, with EO-N for engines dated earlier than 2004.