Is that also including all costs associated for materials and blending associated to meet dexos? ... a trickle down from the additive company and all their testings, etc to obtain a dexos blended oil. If that "over $1m per year" dexos licensing fee is only from the $1250 flat fee plus a per gallon sold royalty then that small blender must be selling a lot of oil. If it's boiling down to around $0.25/gallon like you said in post 13, then $1M royalty would equate to 4M gallons. At one time GM was charging around $0.36/gallon, and even at that rate in order to rack up $1M in "dexos fees" they would have to sell 2.8M gallons. Would need more details to really understand the cost breakdown. Per info in post 7, it may cost more to achieve an API certification.
From an old thread discussing the cost to meet dexos ... could be different now. Seems like it's hard to get the real story.
Originally Posted By: fredfactory
Originally Posted By: CapitalTruck
How anybody can read that article and fail to interpret that the per gallon/per unit royalty fee structure is no longer in existence is amazing to me. A whole ton of new companies came online when they changed the fee structure from that major .36 per quart to the flat fee. Anybody who follows the Dexos list will be able to tell you that it increased exponentially within the past few years.
You and NMburb are confused. There still is a per-gallon fee! Its just a calculated fee based on market share, a close estimate...