GM Dexos Question?

[fdcg27]

Yep.
"Dexos" is no more nor less than a cash grab on the part of GM.
Most of GM's North American output would run happily on any SL/SM/SN oil.
For those few applications requiring a better oil, GM could have simply required an oil meeting the current, recoginzed, A3 standard, rather than coming up with some pay to play standard of their own.
GM ain't Porsche, Mercedes or BMW.

 

[oggb]

Originally Posted By: sm00thpapa

I picked up 28 quarts of this oil and not one of the SN quarts has this on the front. Guess you got a most current batch.


Just got two cases of this myself. Guess it's better oil than I thought...

 

[troyb43]

Originally Posted By: fdcg27
Yep.
"Dexos" is no more nor less than a cash grab on the part of GM.
Most of GM's North American output would run happily on any SL/SM/SN oil.
For those few applications requiring a better oil, GM could have simply required an oil meeting the current, recoginzed, A3 standard, rather than coming up with some pay to play standard of their own.
GM ain't Porsche, Mercedes or BMW.


They want all the $$$ they can get!

 

[OldCowboy]

Originally Posted By: LS2JSTS
Originally Posted By: OldCowboy


Yowzzers!

$0.36 per gallon!!

That means GM gets from $1.44 (4 qt) to $2.52 (7 qt) of pure profit every time anyone in the world gets an oil change using dexos approved oil. That's a lot of vig.


Huh...I thought there were 4 qts in a gallon...is this a metric trick question???


Oops.

Looks like I messed that up by a factor of 4. Still $0.39 - $0.78 per oil change directly into GM's pocket is a lot of clams. GM sold 2,202,927 vehicles in 2010. Assuming a 5 quart average OC and 2x OC per year, that's $2,147,853 per year in licensing fees just for the vehicles sold in 2010.

 

[Milkman]

Actually, it adds up to more money than that. If I buy a 5 qt jug of any Dexos approved oil, GM gets .45 . And it doesn't matter what kind of car that it is put into. Sounds like another TAX to me ???

 

[A_Harman]

GM says that they apply all of the licensing and royalty money to administering the dexos certification program. This is not only administrative paper pushing, but also bench and engine testing of candidate oils. This runs into some bucks. Besides, the dexos specs are more stringent than API, so if I had a choice, I would put dexos in my car if I was wanting to choose the "better" lubricant.

 

[OldCowboy]

Originally Posted By: A_Harman
GM says that they apply all of the licensing and royalty money to administering the dexos certification program. This is not only administrative paper pushing, but also bench and engine testing of candidate oils.


Plus, a HUGE bonus for the guy who thought up this scheme.

 

[cp3]

Originally Posted By: MonumentOiler
A little more dexos news with the licensing fee schedule :

GM offers dexos details - from Lube Report

Quote:
Licensees will pay a $1,000 annual fee for each product, plus a royalty of 36 cents on every gallon of dexos they sell.


Looks like this has changed. GM Switches to Flat Fee on Dexos - Lube Report

 

[wapacz]

Originally Posted By: cp3
Originally Posted By: MonumentOiler
A little more dexos news with the licensing fee schedule :

GM offers dexos details - from Lube Report

Quote:
Licensees will pay a $1,000 annual fee for each product, plus a royalty of 36 cents on every gallon of dexos they sell.


Looks like this has changed. GM Switches to Flat Fee on Dexos - Lube Report


Yeah i was going to say i thought they had really cut back on there licensing prices after some back lash.

 

[Finklejag]

I wonder if Ashland, CP, and BP will get their oils certified now?

 

[LordAbbett]

I wish there was more clarity on what the "new flat fee" actually is. sounds like the fee is calculated by using 3 numbers. On a regional basis
1 PCMO market in gallons total
2 GM's market share %
3 Oil marketer's market share %

Gm uses that number to calculate the number of gallons that goes into gm vehicles. The fee still $0.36 per (estimated )gallon?

 

[pbm]

Originally Posted By: sm00thpapa
Originally Posted By: renegade_987
Here is the pic. You can see it right above where it says SYNTHETIC

I picked up 28 quarts of this oil and not one of the SN quarts has this on the front. Guess you got a most current batch.



I picked up 10 quarts of NAPA synthetic last month and I never noticed the dexos quote until you pointed it out.
8 of the 10 quarts have the quote despite all being SN spec'd.
I wasn't sure if I would use this oil in my Cruze but now I might. Thanks.

 

[pbm]

Originally Posted By: renegade_987
Here is the pic. You can see it right above where it says SYNTHETIC

I picked up 10 quarts of NAPA synthetic last month and I never noticed the dexos quote until you pointed it out.
8 of the 10 quarts have the quote despite all being SN spec'd.
I wasn't sure if I would use this oil in my Cruze but now I might. Thanks.

PS: I also think this is a money grab by GM. The majority of 2011 GMs will run fine on SN dino (IMO) but with the turbo I'll use full synthetic.