AMSOIL no longer pursuing Euro OEM approvals

We know all your gripes by now - but as an GM owner I am supposed to trust Scott Fox ahead of GM, bro ?


Let’s take a 38,000 foot view of the manufacturer, distributor and installer market for a minute. Which, is the method that the majority of automotive fluids get distributed.

You can even translate it to the DIY market with manufacturer and store shelf space.


Blenders only have so many tanks. Tanks cost money to up keep and utilize. They also have only so much room for additives, so much time to solubilize them. Etc.

Solution: Use the same ingredients for both Dexos and non Dexos product in the same viscosity grade.


Distributors - Trucking and tankage is expensive. Solution: Buy and market one product - Dexos.

Installers - Tanks take up a lot of space. Solution - buy one product - Dexos.


GM has approximately ~16% of the U.S. market share. Yet, the majority of people changing their oil out there, are using a GM licensed product, that GM, that you’re paying ~$1.30 a gallon to license to them.

So yeah, it’s a fleecing. It’s especially a fleecing when you know GM sits on the API board governing board for automotive specs. And could easily coincide their Dexos specs with the API specs. And the way they market Dexos, let alone charge for it.

Again, I don’t care what oil anyone uses. If you want to use Dexos, great. Probably one of my friends is making it, or making the base oil for it, or hauling it, or packaging it, etc.

I’m just going to tell people the truth, that it’s not just GM. It’s also MOPAR with their 0w40 spec, it’s Allison with their TES 668 spec. Emory with gear oils.

Which is, to wrap this all up with the topic in this thread, why Amsoil (et al, others in the industry) are not going to continue to bite on these absolutely absurd fees. And will then, play the “recommended” for and “meets or exceeds” game. Because unless you push the volume, you can’t afford the fees.

Both ways, are bad for the end user / consumer.
 
Let’s take a 38,000 foot view of the manufacturer, distributor and installer market for a minute. Which, is the method that the majority of automotive fluids get distributed.

You can even translate it to the DIY market with manufacturer and store shelf space.


Blenders only have so many tanks. Tanks cost money to up keep and utilize. They also have only so much room for additives, so much time to solubilize them. Etc.

Solution: Use the same ingredients for both Dexos and non Dexos product in the same viscosity grade.


Distributors - Trucking and tankage is expensive. Solution: Buy and market one product - Dexos.

Installers - Tanks take up a lot of space. Solution - buy one product - Dexos.


GM has approximately ~16% of the U.S. market share. Yet, the majority of people changing their oil out there, are using a GM licensed product, that GM, that you’re paying ~$1.30 a gallon to license to them.

So yeah, it’s a fleecing. It’s especially a fleecing when you know GM sits on the API board governing board for automotive specs. And could easily coincide their Dexos specs with the API specs. And the way they market Dexos, let alone charge for it.

Again, I don’t care what oil anyone uses. If you want to use Dexos, great. Probably one of my friends is making it, or making the base oil for it, or hauling it, or packaging it, etc.

I’m just going to tell people the truth, that it’s not just GM. It’s also MOPAR with their 0w40 spec, it’s Allison with their TES 668 spec. Emory with gear oils.

Which is, to wrap this all up with the topic in this thread, why Amsoil (et al, others in the industry) are not going to continue to bite on these absolutely absurd fees. And will then, play the “recommended” for and “meets or exceeds” game. Because unless you push the volume, you can’t afford the fees.

Both ways, are bad for the end user / consumer.
Problem for you as a high volume bulk seller - not a problem for me …
 
Let’s take a 38,000 foot view of the manufacturer, distributor and installer market for a minute. Which, is the method that the majority of automotive fluids get distributed.

You can even translate it to the DIY market with manufacturer and store shelf space.


Blenders only have so many tanks. Tanks cost money to up keep and utilize. They also have only so much room for additives, so much time to solubilize them. Etc.

Solution: Use the same ingredients for both Dexos and non Dexos product in the same viscosity grade.
Sure, but the extension to that argument is that by this being the case, Dexos is a net benefit for the consumer because it means they are inadvertently getting a higher quality product (meets a higher spec) by virtue of this situation that blenders find themselves in.
 
Sure, but the extension to that argument is that by this being the case, Dexos is a net benefit for the consumer because it means they are inadvertently getting a higher quality product (meets a higher spec) by virtue of this situation that blenders find themselves in.


So why couldn’t GM just push for a lower Noack with API?

After all, they have the loudest voice at that table vs any other manufacturer in the U.S.


You saw them use that leverage with SN+ very quickly.
 
So why couldn’t GM just push for a lower Noack with API?

After all, they have the loudest voice at that table vs any other manufacturer in the U.S.


You saw them use that leverage with SN+ very quickly.
Maybe they and the others disagree on the importance? But I mean, we could question the same reason the limits are different for the Stellantis and Ford approvals than for the API ones. The difference with GM is obviously the monetary angle with respect to Dexos, but that doesn't mean that there isn't added value to the consumer due to its existence.

Same could probably be said for VW 502 and Porsche A40 when added to A3/B4, they make for a better oil and their inclusion is effectively by default for the most part at this juncture. LL-01 is a different bird there however, with it disappearing and reappearing due to changes BMW made.
 
As a guy that is held hostage to 300 products all requiring global certification, I understand the blenders push back toward everyone licensing their own oil and certification/fee/royalty process.
At some point the paperwork and complexity burden of supporting dozens of standards becomes unbearable.

With the number of post license/approval changes that get made I wonder how many oils end up as what they started out as anyway.
 
So why couldn’t GM just push for a lower Noack with API?

After all, they have the loudest voice at that table vs any other manufacturer in the U.S.


You saw them use that leverage with SN+ very quickly.
API is oil industry group. Fundamentally different from ACEA, manufacturers group.
The reason why ACEA was formed is unwillingness of API to follow manufacturers in the beginning of 90’s.
 
Maybe they and the others disagree on the importance? But I mean, we could question the same reason the limits are different for the Stellantis and Ford approvals than for the API ones. The difference with GM is obviously the monetary angle with respect to Dexos, but that doesn't mean that there isn't added value to the consumer due to its existence.

Same could probably be said for VW 502 and Porsche A40 when added to A3/B4, they make for a better oil and their inclusion is effectively by default for the most part at this juncture. LL-01 is a different bird there however, with it disappearing and reappearing due to changes BMW made.


The problem with your argument, is that GM had to agree on the API specifications and testing methodology.

Which is why GF7 is such a big deal, as most of the old tests are changing.


I would also argue, that due to GM’s actions it’s made the cheating industry more prevalent. Because there is a larger monetary incentive to cheat. Which, in all is a negative for the consumer and once more, incentivize consumers to go back to the dealership out of “trust.” In turn, this is more expensive for the consumer overall.

Which is why a lot of the major players in the DIY market just aren’t licensing it anymore. Because of the financial incentives not to.

This is the same driving factor for amsoil not to license the Euro oils.
 
API is oil industry group. Fundamentally different from ACEA, manufacturers group.
The reason why ACEA was formed is unwillingness of API to follow manufacturers in the beginning of 90’s.

The API specs are written, by the automotive OEMs. It’s a council that puts out requests to the lubricant developers - primarily additive companies now - to meet certain criteria’s for next generation oil.

The historical reasons why the API enforces this, is because when the first automotive specs were written, the oil industry was mostly regionalized, small player still. Especially in the lubricants market. And it was a way to govern base oils, testing, etc.
 
The problem with your argument, is that GM had to agree on the API specifications and testing methodology.

Which is why GF7 is such a big deal, as most of the old tests are changing.
GM, and everyone else, it's not a decision made in a vacuum. The API specs are improving, but that doesn't mean that the OEM specs won't continue to be more stringent. The OEM specs didn't randomly emerge from the ether, they were brought into existence by manufacturers because the existing basic API and ACEA standards weren't sufficient.
I would also argue, that due to GM’s actions it’s made the cheating industry more prevalent. Because there is a larger monetary incentive to cheat. Which, in all is a negative for the consumer and once more, incentivize consumers to go back to the dealership out of “trust.” In turn, this is more expensive for the consumer overall.
If cheating is taking place, then all the more reason to use major brands with a seat at the table like XOM, SOPUS, Castrol...etc. If the bar is set too high for Joe Blow store brand; if they can't compete with a fully approved product sold for around the same price at Walmart (M1, PP, Edge...etc) then why is that my problem as a consumer?

If "Five Guys in a Shed" are making tubing for the nuclear energy sector and the NRC revises the quality standards to be more stringent, if BWXT and Alcan are still able to make the tubing to the same price point but "Five Guys in a Shed" start cheating, is that the fault of the NRC or the skids at Five Guys? And what does that say about their adherence to standards previously? It would (justifiably) call into question their QC history and spur an audit.
Which is why a lot of the major players in the DIY market just aren’t licensing it anymore. Because of the financial incentives not to. This is the same driving factor for amsoil not to license the Euro oils.
As I said in the OP, I suspect the increase in sales from distributing fully approved products didn't materialize for AMSOIL. But that doesn't mean they aren't using an approved additive package and just not sticking to the approved formula and top-treating. For a company that commands the prices that AMSOIL does for their product, forcing their products into that box and constraining formulation to keep the approval was not about it being unaffordable but more about it being a waste of money, since it had no meaningful impact on their sales in that sector, at least that's my suspicion, since I don't have access to their sales data.
 
The API specs are written, by the automotive OEMs. It’s a council that puts out requests to the lubricant developers - primarily additive companies now - to meet certain criteria’s for next generation oil.

The historical reasons why the API enforces this, is because when the first automotive specs were written, the oil industry was mostly regionalized, small player still. Especially in the lubricants market. And it was a way to govern base oils, testing, etc.
Nope. ACEA formation was in particularly response to API not being willing to follow downsizing trend in Europe, particularly in diesel engines. I am not arguing that manufacturers don’t have an input, but FAR from them “writing” specifications.
 
GM, and everyone else, it's not a decision made in a vacuum. The API specs are improving, but that doesn't mean that the OEM specs won't continue to be more stringent. The OEM specs didn't randomly emerge from the ether, they were brought into existence by manufacturers because the existing basic API and ACEA standards weren't sufficient.

If cheating is taking place, then all the more reason to use major brands with a seat at the table like XOM, SOPUS, Castrol...etc. If the bar is set too high for Joe Blow store brand; if they can't compete with a fully approved product sold for around the same price at Walmart (M1, PP, Edge...etc) then why is that my problem as a consumer?

If "Five Guys in a Shed" are making tubing for the nuclear energy sector and the NRC revises the quality standards to be more stringent, if BWXT and Alcan are still able to make the tubing to the same price point but "Five Guys in a Shed" start cheating, is that the fault of the NRC or the skids at Five Guys? And what does that say about their adherence to standards previously? It would (justifiably) call into question their QC history and spur an audit.

As I said in the OP, I suspect the increase in sales from distributing fully approved products didn't materialize for AMSOIL. But that doesn't mean they aren't using an approved additive package and just not sticking to the approved formula and top-treating. For a company that commands the prices that AMSOIL does for their product, forcing their products into that box and constraining formulation to keep the approval was not about it being unaffordable but more about it being a waste of money, since it had no meaningful impact on their sales in that sector, at least that's my suspicion, since I don't have access to their sales data.

I really can't stand the break up of quotes, especially trying to reply from a phone.

But it's what I pointed out earlier, in the thread: GM and others, are trying to drive people back to the dealership, or otherwise capitalize from it through monetary gain.

Your counter quote was: When OEM-approved oils are available off the shelf at reasonable prices at every store including Walmart, I'm not sure as to how this could be construed as some grand conspiracy to force buying oil from the dealership.

Well, we've seen GM, Ford and others essentially drive their own aftermarket parts re-sellers out of business. I can't tell you the number of ACDelco, Motorcraft, Mopar, etc. third party parts distributors that are now done. This is to drive the parts market back through the dealership(s) for independent shops. They've driven parts re-manufacturing essentially out of business as well, in a lot of cases, or only through factory programs. Everything used to have a core charge, now almost nothing automotive does. You're seeing serialized parts that require dealership level diagnostics to approve the repairs. (I.e. Right to repair argument.)

You're seeing oil specs, such as the MOPAR 0w40 spec, that literally no one else can meet. Just not worth the money, period. Or, simply won't ever be licensed - TES 295 was one of these, certain automotive gear oils, transmission fluids, etc. There's one manufacturer for it, period.

So yeah, it's not a 'grand conspiracy' - it's simply the facts that the automotive OEM's are directing the consumers, forcefully, to the dealerships. Then they're purposefully making large dealership networks that are essentially, OEM direct business. (You see this more in the Ag / construction side, but it's going to play out the same in automotive.)


Next - cheating.

The problem with your view on cheating, is you're looking at it from arguably, top 1% educated consumer. Let me remind you, the majority of people? Especially when it comes to engine oil? They're dumb. They are *very* dumb. They take it to a quicklube and get it changed, thats the end of the story for them. That is still the majority of the US engine oil market. Between My company, Reladyne and Cadance, there's over 40 million gallons of house branded PCMO business. In my case, yeah I don't cheat, won't cheat, not worth it. But I compete against people cheating every day, because there is an economic inventive from it, that allows shady players, to abuse the unwitting.

You're looking at it from the perspective that knows better. Not from the perspective that doesn't know better. Now you can say education - sure, but... How? Where do you begin on this? It goes back to my above topic, the easiest way is to force people back to the dealership, to tie it back in.

The other part about cheating, is the not-cheating, cheating. Or the gaming of specifications. For example, you can blend Petro Canada Group III's with Safety Kleen Group III's, toss in an afton additive package and BAM, Dexos 1 Gen 3 oil.

The problem is, it's trash. It's *Super* cheap, but they gamed the system, low noack, it's got the right approvals, but it's... not a good product, for it's category. And it's literally cheaper than some hydraulic oils to make. But, how many people on this board knew this before I just opened my mouth right now? No one. You assume you're getting a premium product when you buy that Dexos 1 Gen 3 name plate, but a lot of times, on top of the straight up cheating, you're getting a gamed product. Not a premium product you'd other wise assumed to be getting.

Third, Amsoil - The reason why I personally see this as a potential problem, is muddying up the market. If you have a player like Amsoil, or even Valvoline, going down the road of "Meets of Exceeds" it starts muddying up the market place more and more. People see these major brands that "meet or exceed" then when smitty's supply or starfire releases their newest wunderbrand oil, that makes you wonder what it is... People will buy it. Because hey, everyone else is doing that, right??

Again, personally / professionally - I don't particularly care. You do you. I'm just noting my view on the market place from someone that sees a very, very different view of the oil industry than probably anyone else here.
 
ACEA sequences are a base for subsequent approvals. Most manufacturer approvals add additional requirements to them.

And as far as Asian ATF specs go, no one knows what they are. Do you?
The specs are hard to find, but that hasn't stopped some here from saying (for example) that Mazda colored the FZ ATF blue so you'd have to buy it from them, and any ol' ATF would do in the place of FZ. My point is no one here dismisses the European manufacturers' specified fluids in the same way.
 
Nope. ACEA formation was in particularly response to API not being willing to follow downsizing trend in Europe, particularly in diesel engines. I am not arguing that manufacturers don’t have an input, but FAR from them “writing” specifications.

I have no idea why you replied what you did... I did not say anything about the ACEA formation. I simply said why the API took over governing engine oils.


And yes, the Auto OEM's literally write the specs they wish they could hit. And then the additive companies figure out what's realistic to hit.

Here: https://share.ansi.org/Shared Documents/Standards Activities/International Standardization/ASTM Petroleum Standards Project/Ghana Workshop/USAID Ghana - API Engine Oil Standards - Harmening Rev0.pdf

GM, Ford and others, literally sit on the API's Lubricants standards group.
 
I have no idea why you replied what you did... I did not say anything about the ACEA formation. I simply said why the API took over governing engine oils.


And yes, the Auto OEM's literally write the specs they wish they could hit. And then the additive companies figure out what's realistic to hit.

Here: https://share.ansi.org/Shared Documents/Standards Activities/International Standardization/ASTM Petroleum Standards Project/Ghana Workshop/USAID Ghana - API Engine Oil Standards - Harmening Rev0.pdf

GM, Ford and others, literally sit on the API's Lubricants standards group.
As I said, they have input, but far from “writing” it without clout of oil companies. Also, as mentioned, these decisions don’t happen in vacuum!
 
As I said, they have input, but far from “writing” it without clout of oil companies. Also, as mentioned, these decisions don’t happen in vacuum!


No, you said this:

API is oil industry group. Fundamentally different from ACEA, manufacturers group.
The reason why ACEA was formed is unwillingness of API to follow manufacturers in the beginning of 90’s.


It's clearly, written, from the API, above, that they listen to the manufacturers. All they are is a governing body, between what the automotive industry wants and what's realistic from the oil industry.

In no way, is the API unwilling to follow the manufacturers. The Manufacturers simply tell the API what to do, the API does it. As long as it's something that can realistically be done by the oil industry.

Example of a hard no:

If the Automotive OEMs told the API the new specs for oil would be all PAO/Easter/AN base stocks. This would be a hard no, it's not realistic. There is just simply not enough of those base oil types produced to meet consumer demands.
 
No, you said this:

API is oil industry group. Fundamentally different from ACEA, manufacturers group.
The reason why ACEA was formed is unwillingness of API to follow manufacturers in the beginning of 90’s.


It's clearly, written, from the API, above, that they listen to the manufacturers. All they are is a governing body, between what the automotive industry wants and what's realistic from the oil industry.

In no way, is the API unwilling to follow the manufacturers. The Manufacturers simply tell the API what to do, the API does it. As long as it's something that can realistically be done by the oil industry.

Example of a hard no:

If the Automotive OEMs told the API the new specs for oil would be all PAO/Easter/AN base stocks. This would be a hard no, it's not realistic. There is just simply not enough of those base oil types produced to meet consumer demands.
API is oil industry group! It is FUNDAMENTALLY different from ACEA. It is different bcs. primary role API plays is protecting interests of oil companies. ACEA is car manufacturers group. It’s role is to protect interests of car manufacturers.
Both groups are involved in various other thing, not just oil specifications.
However, the initial idea behind ACEA was because API couldn’t or didn’t want to meet requirements of European manufacturers.
API listens manufacturers. As @OVERKILL already told you, these things don’t happen in vacuum. However, primary clientele of API are oil companies and THEIR interests!
 
API is oil industry group! It is FUNDAMENTALLY different from ACEA. It is different bcs. primary role API plays is protecting interests of oil companies. ACEA is car manufacturers group. It’s role is to protect interests of car manufacturers.
Both groups are involved in various other thing, not just oil specifications.
However, the initial idea behind ACEA was because API couldn’t or didn’t want to meet requirements of European manufacturers.
API listens manufacturers. As @OVERKILL already told you, these things don’t happen in vacuum. However, primary clientele of API are oil companies and THEIR interests!

Except, I linked you a document explaining exactly how the API works when it comes to Oil licensing, how it's done and whom it's done by and for.

And you're also talking to someone that is, involved, with the API, a lot.

But, sure, whatever you say.
 
Except, I linked you a document explaining exactly how the API works when it comes to Oil licensing, how it's done and whom it's done by and for.

And you're also talking to someone that is, involved, with the API, a lot.

But, sure, whatever you say.
lol, ok, you are right, we are wrong.
 
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