MOTOR OIL MATTERS Campaign for Motor Oil Quality

Transcription

1 MOTOR OIL MATTERS Campaign for Motor Oil Quality January L Street, NW Washington, DC

2 Overview I. Challenge Facing Industry II. Industry Comes Together III. Taking Action IV. Motor Oil Matters V. Summary

3 API Lubricants Group CHALLENGE FACING THE INDUSTRY

4 Need for Chain of Custody API sampling and testing bulk engine oil since 1999, but not my oil common refrain Difficult to determine if OEM-recommended APIlicensed oil being installed Engine oil distributors, installers and consumers not always receiving information needed to make informed decision on engine oil Weights and measures requirements for packaged engine oils, but not bulk

5 2011 AMAP Licensed Oils Summary S 1 ST % OF SAMPLES C 1 ST BULK BOTTLED BULK BOTTLED OVERALL FULLY CONFORMING OILS OILS OK PAPERWORK / BRAND ISSUES OILS WITH QUESTIONABLE ADDITIVE OILS WITH ADDITIVE DEFICIENCIES PHYSICAL PROPERTY/BENCH TEST ISSUE Some oils have multiple issues

6 Recent Bulk Critical Fails OIL PERFORMANCE DEFICIENCIES SAE 10W-30 SAE 5W-20 SM SM Higher oil consumption SAE 10W-30 SM Stress on exhaust emission control SAE 5W-30 SN Higher oil consumption & stress on exhaust emission control SAE 5W-30 SAE 15W-40 SAE 5W-20 SAE 10W-30 SAE 5W-30 SAE 10W-40 SAE 5W-20 SAE 10W-30 SAE 5W-30 SAE 15W-40 SM CJ-4/SM SM SN SM/CF API SN SN SM SM CJ-4/SM Higher oil consumption & poor protection against engine wear Poor protection against engine wear Poor oil pumping at winter temperatures

7 Receipts from Audit Short on Info All 2011 Bulk 2011 Individual Locations Count % Count % Total Population Receipt Contents Visc Grade % 77 71% Marketer 31 15% 13 12% Brand Name 71 35% 35 32% Performance Level 32 16% 15 14%

8 API Lubricants Group INDUSTRY COMES TOGETHER

9 Chain of Custody API formed group of marketers, distributors and installers To advise API on bulk oil handling and distribution and draft chain-of-custody standard To consider and incorporate comments including those from Automotive Oil Change Association (AOCA) MOM group and API Lubricants Group reviewed draft and approved new standard, API 1525A, Bulk Engine Oil Chain of Custody and Quality Documentation Available on-line at and Covers chain of custody for bulk engine oil from marketer/blenders to distributors to installers

10 API 1525A Standard

11 Program Guidelines

12 Links in Chain Marketer/Blenders Order requirements and bills of lading featuring brand, viscosity grade, API service category and other information Batch testing and retains Quality statement (for example, C of A) Records retention

13 Links in Chain Distributors Order requirements, invoices, bills of lading, and drop tickets featuring brand, viscosity grade, API service category and other information Receiving inspection and retains Pre- and post-dispensing measurement Records retention

14 Links in Chain Installers Order requirements featuring brand, viscosity grade, and API service category Pre- and post-dispensing measurement Records retention Customer receipts with brand, viscosity grade and API performance

15 API Lubricants Group TAKING ACTION

16 Recent Actions Filed suit in Federal District Court Fourteen companies and individuals in Michigan and Indiana Settled all cases with defendants Resulted in admissions of counterfeiting API s certification marks and making false performance claims for engine oil sold to consumers and branches of military Posted unlicensed companies on-line Listed first cancelled marketer

17 Posted Unlicensed Companies

18 Cancelled Marketer

19 Cancelled Marketer

20 API Lubricants Group MOTOR OIL MATTERS

21 MOM Campaign Educate consumers on oil quality Identify motor oil sold in bulk through chain of custody From distributors To installers To consumers Auditing to Assure Quality

22 Education Underway Communicating MOM messages to industry and consumers Improved website Twitter and Facebook platforms Search engine optimization and paid search campaign Trade shows like NACS and AAPEX Public relations editorials Advertising/advertorials Direct communication marketing Video testimonials

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24 Licensing Process for Distributors Start with on-line checklist on MOM website Distributor responds to on-line checklist and uploads supporting documents Distributor pays $3,000 fee If checklist and documents acceptable, contractor from API collects motor oil samples from distributor Fee for sample collection paid by distributor ($1,000 per distributor location included in application) License issued after test results confirm quality of products handled by distributor Completion of on-line checklist and document submission required annually as part of renewal process, but paid sample collection conducted every 3 years if license renewed annually API conducts random audits (paid by API)

25 Licensing Process for Installers Installers self-certify through MOM site Complete on-line checklist as condition of licensing Installer pays $400 for first location and $100 for each additional location Submit copies of distributor invoices and customer receipts to prove compliance Once licensed, aftermarket audit ensures licensed installers adhere to API 1525A requirements

26 Licensing Timeline Accepting applications now Licenses being issued Licensees use API MOM Marks

27 Benefits of Licensing On-line API MOM Directory of Licensees MOM campaign participant with access to MOM promotional materials MOM licensing and aftermarket audit compliant Protection through chain of custody API enforcement through chain of custody Weights and measure efforts Legal action Right to promote status as API licensee

28 MOM Marks

29 Promotional Materials Each licensee receives materials when first licensed and after annual renewal Counter mat Motor Oil Matters guides Pop-up counter display with flyers Location/distributor-specific, dated door decal

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32 Making Aware of and Assuring Quality Through Aftermarket Audit API aftermarket audit to cover licensed distributors and installers Distributor and installer motor oil documentation examined Motor oil from distributor tanks sampled and tested as part of application process Motor oil delivered to distributor s customers/installers subject to random testing Licensed installers subject to random testing Failure to comply with program requirements results in cancellation and placement on list

33 Audit Process API audit manager coordinates process Southwest Research Institute collects samples through global network Intertek Automotive Research tests blind-coded samples API consultant and audit manager evaluate results API program manager, audit manager, consultant and other staff members coordinate response Applicant or licensed location notified of results

34 Audit Tests ASTM Method Property PCMO HD Eligible Viscosities/Categories D C X X Every oil D4683 High Shear Viscosity X X Every oil except single W grades D5293 Cold Crank X X Every oil except single, non-w grades D4684 Pumping X X Every oil except single, non-w grades D5800 Volatility X X Every Oil D892 Foaming X X Every 3rd sample, Option A" Yes for PCMO; Optional for CJ-4; None for Other HD D6082 High Temp Foam X Every 3 rd Oil D6557 Ball Rust Test X For API SJ, SL & SM Oils - Every 10th D6594 High Temp Corrosion X For CH-4, CI-4, CI-4 PLUS & API CJ-4 Oils - Every 10th D Pass Shear Stability X X For API SL, SM, CI-4, CH-4 Oils - Every 10th D Pass Shear Stability X For API CJ-4 & CI-4 PLUS Oils - Every 10th D7528 ROBO - MRV X For API SN & SM SAE 0W20, 0W30, 5W20, 5W30 & 10W30 - Every 10th D2896 Total Base Number X X For SN/RC, GF-5 & HDEO Oils - Every Oil D4951 Additive Elements by ICP X X Every oil

35 API Lubricants Group SUMMARY

36 Motor Oil Matters Customers and consumers not always getting what they expect Industry s reputation suffers as result Industry stepped up and taking action

37 Thank You API 1220 L Street, NW Washington, DC USA Kevin Ferrick ferrick@api.org L Street, NW Washington, DC