HOUSTON -- With the rebranding of Texaco to Shell getting underway officially earlier this month, some 720 U.S. Texaco Xpress Lube operators need to decide whether they want to rebrand as Shell Rapid Lubes or make deals elsewhere.
Texaco Xpress Lube has been operated by Equilon Enterprises LLC, Houston, a joint venture between Shell and Texaco. The Federal Trade Commission required Texaco to sell its interest in Equilon before the federal regulators would approve Texaco’s merger with Chevron Corp. The decision-making process actually began last year, according to Rick Worth, manager of marketing for Equiva Services, the marketing arm of Equilon, as well as for sister venture Motiva Enterprises LLC.
Shell is offering turnkey, free exterior conversions for Texaco Xpress Lube operators, who may choose not to convert, as they are not technically considered franchises, Wirth said.
Ownership of the Xpress Lube brand will revert to ChevronTexaco in 18 months.
Equilon officials expect many of the Texaco Xpress Lube operators to convert to Shell. “Shell Rapid Lube operators will get to leverage Shell’s gasoline retail sites,” said Susan Day, installed channel manager for Equilon. “Our benefits are going to be lower costs of goods for filters and wiper blades.”
