Monday, September 20, 2010   VOLUME 6 ISSUE 37  
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Chevron and CITGO Say No to dexos1™ Licensing

Chevron has announced it will not license its Havoline® and Supreme® motor oils under the dexos 1 trademark. Chevron believes the current ILSAC classification system for monitoring engine oil quality amply meets the needs of the North American PCMO market. Havoline and Supreme motor oils will continue to meet the latest API/ILSAC standards for passenger car motor oils.

However, though not formally licensed, a reformulated Havoline and Chevron Supreme product will be introduced that will meet the performance requirements of dexos 1™. Chevron currently anticipates the reformulated product to be available by early next year.

Chevron stated "We strive to efficiently manage cost and complexity to keep our customers as competitive as possible in the marketplace. The additional costs of the dexos 1™ licensing and the added potential complexity of carmakers making separate decisions on product formulations were key decision factors for Chevron."

Late this past Friday, CITGO advised OEM/Lube News it will not be officially licensing dexos 1™. "CITGO SUPERGARD Synthetic Motor Oil will be repositioned as dexos 1™-capable and will be ILSAC GF-5 and API SN licensed, but CITGO does not intend to pursue a dexos 1™ license" says CITGO. Packaged SUPERGARD Synthetic product that is dexos 1™-capable is targeted for mid-November in the GM specified 5W30 grade. Bulk product availability is targeted for the second half of October 2010.

CITGO states "It should be noted that the use of the appropriate CITGO product for GM vehicles will NOT void the vehicle's warranty and, as always, CITGO fully stands behind the performance of our products".

CITGO, like Chevron, and earlier statements by others such as Valvoline and Castrol, state "GM will be charging substantial fees for licensing and it is likely that this significant cost will be passed on to the consumer for licensed dexos 1™ products and for this reason CITGO does not intend to pursue a dexos 1™ license".

Also, contrary to other published reports earlier this past week, a Petro-Canada Lubricants spokesperson told OEM/Lube News late last Friday "Petro-Canada is still in the process of evaluating whether or not we will offer a dexos 1™ licensed motor oil. We will be introducing a product which meets or exceeds the requirements of the dexos1 specification, but a decision on licensing is still pending."

To date, of the major motor oil marketers, Valvoline, Castrol, Chevron and CITGO have decided against dexos 1™ licensing of their motor oils, while Shell and ExxonMobil have announced that their motor oils will be dexos 1™ licensed. Of the independents, Cam2 has announced that its motor oils will be dexos 1™ licensed.


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