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One cannot write about government affairs without mentioning the ubiquitous Right to Repair Act that has been reintroduced by Senators Barbara Boxer (D-CA) and Sam Brownback (R-KS). The latest incarnation of the act “would require car manufacturers to provide to all repair shops the access codes, repair instructions, tools, equipment, and other information necessary to diagnose, service and maintain their vehicles.” The press release goes on to say that “manufacturers must provide the same information to independent repair shops as they provide to authorized dealers.”

Passage of this bill will require real-world examples of barriers to independent repair shops servicing vehicles. The Automotive Oil Change Association has been soliciting comments from members that illustrate the need for passage of the Right to Repair Act.

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California automotive service providers are faced with the prospect of a state mandate requiring them to inflate their customers’ tires to the correct pressure. The California Air Resource Board (CARB) endeavors to reduce the amount of greenhouse gasses released from vehicles with underinflated tires and without tire pressure monitoring systems. While many quick lubes already include this service as part of their oil change, others may be required to take part in this program.

There are exemptions for body shops, glass installers, parts stores and auto dismantlers but all other automotive service providers would be captured. Air gauges used to fill tires would be required to have accuracy within 2 PSI and maintain reference materials to determine the correct pressure. How and who would regulate the program has not been specified.

Although this first attempt to change Section 95550 in Title 17 of the California Code of Regulations was disapproved by the State’s Office of Administrative Law, CARB has until July 20th to alter and resubmit their proposed changes.

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In these times of escalating gas prices and SUV’s the size of school buses, fuel economy is at an all-time premium. People are searching for every avenue possible to maximize the amount of value at the pump. In fact, many of the customers pulling into your bays likely track the amount of miles their vehicle is providing per tank and are quick to notice any drop in fuel economy. This provides a perfect opportunity for you to sell them on the value of a fuel system cleaner service and the many benefits it provides:

* Cleans intake valves and combustion chambers
* Restores lost power
* Eliminate deposits to ensure a clean burn of fuel
* Reduces engine knock and hard starts
* Improved fuel economy

As an operator, a fuel system cleaner is one of the simplest and most profitable services you can offer. Not only does the service require no additional bay time, but it provides immediate and tangible results. Additionally, the service is easily coupled with a fuel injection service and/or a new air/fuel filter. This will not only serve to boost your ticket averages, but also the effectiveness and value of the overall service. Customers will see an immediate uptick in fuel economy and become confident not only in future fuel system services, but also other maintenance service you recommend.

Virtually every vehicle that pulls into your bay is a candidate for a PURATECH Fuel System Cleaner. On average, the service carries a $10 to $15 price tag which equates to serious profitability for the quick lube. Operators who effectively present the PURATECH Fuel System Cleaner to every customer should have no problem running 10% or higher service.

For more strategies, pricing, or questions on PURATECH Performance Chemicals please call our sales team at (800) 430-6252.

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Over 20 years have passed since the Exxon Valdez oil tanker spilled 11 million gallons of crude oil in Alaska, but the environmental, economic, and legal impact of the disaster is still felt today. The spill completely destroyed the tourism and fishing industry in the once pristine Prince William Sound. In addition to the hundreds of thousands of seabirds, otters, seals and whales killed by the spill, the once prosperous $12 million per year herring fishery completely disappeared. Legal battles surrounding the spill and corresponding cleanup have waged on for over two decades, marred by numerous appeals by ExxonMobil to reduce punitive damages.

The public backlash against Exxon following the spill was enormous, enough so that they have made a concerted effort to use the merger with Mobil to slowly dissolve the Exxon name and the negative connotations associated with it. In our industry, the Exxon brand has virtually disappeared while the Mobil and Mobil1 brand have blossomed thanks to hundreds of millions of dollars in advertising.

Once considered the most devastating manmade environmental disaster in history, the Exxon Valdez spill is now dwarfed by the crisis created by BP in the Gulf Coast. Current estimates have pegged the BP oil leak at 2 million plus gallons PER DAY, which equates to an Exxon Valdez spill about every six days.

While the public outrage against Exxon 20 years ago was marked by nationwide boycotts and vandalism to Exxon service stations, it pales tremendously in comparison to the opposition BP faces. The media scrutiny of the BP disaster is immeasurably times greater than what Exxon faced due to the massive expansion of television coverage and the advent of the Internet. Social networking sites like Twitter and Facebook provide the public with real time news updates, including opportunities to share graphic pictures and videos of polluted shorelines and oil soaked animals.

Another major factor working against BP is that our nation strives for a much greener identity than we did back in 1989. Our society has become increasingly sensitive to anything or anyone that damages the future of our fragile environment. This environmental concern has banded people together against BP, as evidenced by the hundreds of planned protests at BP facilities and social networking groups like the Boycott BP page on Facebook that, at time of this article, was 800,000+ people strong. These groups are targeting all products associated with BP, which includes Castrol lubricant products.

The question becomes:

How does the BP oil spill impact my business and what changes can I implement to make the best of this very negative situation?

Perhaps the only positive to come out of this catastrophe is it has drawn increased awareness to our need as a society to free ourselves from our dependence on oil and seek cleaner, more eco-friendly forms of energy. This awareness exists at every cultural level including end-use consumers, small business owners, large corporate entities and even our government, both local and federal. As a result, you have a tremendous opportunity to satisfy a need for your customer base while expanding your green footprint within the community. A green oil change service, using re-refined motor oil, presents nothing but positive benefits for your business:

* Attract new eco-conscious customers
* Improve customer retention and loyalty
* Differentiate yourself from your competitor down the street offering $19.95 oil changes
* Position as a premium service and earn additional margin over a standard LOF
* Receive positive press and accolades for offering an environmentally friendly service
* Increase your fleet account business from green companies and city, county, and state municipality vehicles.

The key to implementing a successful green oil change service is timing. As the demand for re-refined motor oil grows, more and more lube operators will source the product and add it their service mix. Your opportunity to grab market share and capitalize on any potential media coverage and environmental awards is now. Unquestionably, this service will become very prevalent in our industry in coming months and the longer you wait, the higher the likelihood that one of your competitors will take the reins and run with it. The current environmental climate dictates a realistic possibility that a green oil change will soon be the norm, not an exception. The fast lube industry, as a whole, has the opportunity to deliver a uniform, green solution to the national preventative maintenance marketplace.

Re-refining used oil into a high-quality lubricant creates a ‘cradle to cradle’ closed-loop system, in which, valuable petroleum resources are used over and over again, delivering tangible environmental benefits. By providing and choosing a green oil change, you and your customer base are:

* Conserving irreplaceable petroleum resources
* Reducing our reliance on foreign crude oil
* Reducing air pollution
* Conserving energy resources
* Supporting our domestic economy

Because re-refined motor oils are collected, manufactured and blended within a fully sustainable system, it completely ELIMINATES environmentally damaging off-shore drilling and transportation. Should re-refined lubricants become the new standard for our society, we may successfully avoid environmental disasters for future generations.

North American Lubricants’ re-refined product line, PureGreen Lubricants, are available nationwide and in all grades, including 10W-30, 5W-30, 5W-20, 15W-40, and even a Dex III ATF. PureGreen Lubricants meet and exceed all of the latest performance standards and are available in bulk, drums and our innovative five quart eco-bottles. We are also proud to offer detailed on-site training, as well as a marketing bundle that includes bay banners, wall posters, and informational pamphlets. Our industry is in the midst of a great number of changes and more are assuredly on the way. Now more than ever, the success of your business will be determined by your ability to adapt and provide innovative solutions for your customers. North American Lubricants welcomes the chance to serve as your partner in navigating these changes and implementing the necessary programs and products to position your business for immediate and future success.

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North American Lubricants Launches Performance Chemical Line

SCOTTSDALE, Arizona- (9/4/2009) North American Lubricants, Co. (“NAL”) announced the national rollout of their PURATECH Performance Chemical Line, a complete line of automotive chemicals, designed exclusively for the installed automotive market. Furthering its mission to provide premium quality products and service at competitive prices, NAL relied on its technical expertise to develop a chemical line that, used in combination with top quality PURATECH Lubricants, will deliver enhanced automotive performance to end-use consumers.

NAL President Shane Terry proclaimed, “The introduction of the PURATECH Performance Chemical brand to our family of premium products continues our corporation’s dedication to deliver new solutions to the installed market.” Terry continues, “Throughout the extensive research and development of our Performance Chemical line, we focused on (1) setting a new quality standard for automotive chemicals, (2) providing optimum national logistics, and (3) understanding the current needs and desires of the customers we serve. Feedback from test markets has been tremendous and we are excited to introduce Performance Chemicals as a measurable tool to enhance the profitability of our nationwide customer base.”

The PURATECH Performance Chemical line will initially feature PURATECH Oil System Cleaner, PURATECH Intake System Cleaner, PURATECH Fuel System Cleaner, PURATECH Transmission Sealer and Conditioner, PURATECH Transmission System Cleaner, PURATECH Multi-Vehicle ATF Converter, PURATECH High-Mileage Oil Supplement, PURATECH Universal Power Steering Fluid, and PureSYN DEXRON® VI Automatic Transmission Fluid. NAL anticipates adding to their Performance Chemical line, as dictated by market demand. The introduction of Performance Chemicals broadens the NAL family of premium service tier products, developed to maximize the operating profits of its growing customer base in 44 states. “Combining PURATECH Lubricants, PureGreen Lubricants, Performance Chemicals and our proprietary online ordering and billing system with proactive customer service and professional product and sales training, create the ‘Total Fast Lube Solution’, designed to maximize the
bottom line of any business”, concluded Terry.

NAL was founded in 1999 to provide a fresh bulk lubricant alternative. The corporation was created to combat the rapidly rising costs of lubricants and the shrinking profit margins of lubricant distributors and installed oil change facilities while maintaining a national commitment to brand development and premium product quality. NAL’s family of brands includes PURATECH (retail automotive lubricants), PureGreen (earth-friendly lubricants) and Jobber Wholesale (wholesale bulk lubricants). NAL’s innovative program covers 44 states and supports over 900 national accounts. For more information about NAL, visit www.nalube.com, call (480) 624-5800 or email info@nalube.com

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North American Lubricants Enhances its Premium Motor Oil Line-Up

SCOTTSDALE, Arizona- (2/03/2009) North American Lubricants, Co. (“NAL”) announced the enhancement of specific conventional motor oils to a semi-synthetic formulation. The strategic upgrade began with the immediate conversion of NAL’s conventional 5W-30 and 5W-20 to Puratech SYN-Blend motor oil. NAL also declared that the advancement to SYN–Blend 5W-30 and 5W-20 will come at no additional cost to its customers. NAL will continue to offer viscosity grade 10W-30 in both conventional and SYN-Blend options.

NAL founder and Chairman Larry Read offered, “This strategic move demonstrates our commitment to deliver premium product quality above and beyond standard requirements”. Read continues, “By offering Puratech SYN-Blend motor oil at no additional cost to our customers, we will enhance the value of our national brand and provide a competitive and economic advantage to our branded marketers and national accounts”.

To support the SYN-Blend initiative, NAL introduced a new, innovative motor oil, Puramax High-Performance. Puramax HP, available in viscosity grades 5W-30, 5W20 and 10W-30, was developed to satisfy the ‘better’ tier for those in the installed marketplace that offer a ‘good, better, best’ oil change strategy. Puramax HP motor oil is specially formulated with semisynthetic base stocks, active cleaning agents and robust anti-wear additives to provide added protection, peak performance and extended engine life in hard-working, high-stress and highperformance motors in sport utility vehicles, light-trucks, mini-vans and passenger cars.

NAL President Shane Terry said, “We needed to provide a solution that met the needs of customers that employ a three-tier sales strategy and I feel we hit a ‘home run’ with Puramax HP. Not only does Puramax HP deliver material benefits to the end consumer, it creates a substantial profit center for oil change facilities.” Terry concludes, “Our enhanced motor oil line-up, Puratech SYN-Blend, Puramax HP, Puratech PureSYN, Puratech Hi-Mile and PureGreen Motor Oil, will drive sales, solidify our premium brand positioning and boost the bottom-line of our valuable customers throughout the nation”.

NAL was founded in 1999 to provide a fresh bulk lubricant alternative. The corporation was created to combat the rapidly rising costs of lubricants and the shrinking profit margins of lubricant distributors and installed oil change facilities while maintaining a national commitment to premium product quality. NAL’s innovative program covers 44 states and supports over 900 national accounts. For more information about NAL, visit www.nalube.com, call (480) 624-5800 or email info@nalube.com.

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North American Lubricants Steps Out with Another Price Decrease

SCOTTSDALE, Arizona- (1/09/2009) North American Lubricants, Co. (“NAL”) became the first national lubricant brand to announce a second round of price decreases since lubricant prices peaked last November. Due to the continued decline in raw material costs, NAL announced a price reduction on all orders placed on or after January 12, 2009. Specific details of the decrease were communicated to its branded lubricant distributors and national accounts, but was said to include an additional roll-back of prices up to 8%.

“Kick-starting the New Year with a fresh decrease will accelerate the tremendous growth our corporation was fortunate enough to enjoy in 2008,” proclaimed NAL President Shane Terry. “Our latest price move further demonstrates our commitment to give our branded distributors and national accounts a competitive edge, while maintaining the utmost dedication to premium product quality and customer support.” Terry continues, “By stepping out with a new national decrease, we expect other national brands to follow our lead and pass on much needed economic relief to the market.”

2009 promises to be full of innovative developments for the NAL brand. Terry concludes, “This is the first of many exciting moves our company will make this year. We plan on setting a new industry standard for proactive marketing strategies, designed to enhance the economic performance of our important customers throughout the nation. Stay tuned for additional announcements in the months to come.”

Through their 44 state distribution network, NAL offers Puratech Supreme Motor Oil, Puratech Syn-Blend Motor Oil, Puratech Hi-Mile Motor Oil, Puratech PureSYN Motor Oil (now available in quarts), Puratech Multi-Vehicle ATF and PureGreen Lubricants (an earth-friendly product line) in their profit boosting line-up.

NAL was founded in 1999 to provide a fresh bulk lubricant alternative. The corporation was created to combat the rapidly rising costs of lubricants and the shrinking profit margins of lubricant distributors and installed oil change facilities while maintaining a national commitment to premium product quality. NAL’s innovative program covers 44 states and supports over 900 national accounts. For more information about NAL, visit www.nalube.com, call (480) 624-5800 or email info@nalube.com.

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North American Lubricants Announces a National Price Reduction

SCOTTSDALE, Arizona- (12/02/2008) North American Lubricants, Co. (“NAL”) has announced a national price decrease for its branded lubricant distributors and national accounts. Specific details of the decrease were communicated to its customer base.

Due to the softening of raw material costs, NAL announced a price reduction on all orders placed on or after December 3, 2008. This needed relief was made possible by the improvement in U.S. base oil production and inventories, which have struggled to return to normal levels after experiencing substantial supply interruptions caused by Hurricanes Gustav and Ike. Tight base oil inventory levels and record base oil crack spreads (refiner profit margins) delayed softening of finished lubricant prices as crude oil values steadily declined. As the base oil market’s volatility appears to be subsiding, additive, transportation and packaging costs remain at escalated levels.

NAL President Shane Terry stated, “We are very pleased to pass through this needed decrease to our customers throughout the nation. After the unprecedented volatility we have seen in 2008, a little good news goes a long way.” Terry continues, “Beyond pricing, we will continue to work hard to deliver new solutions that provide tangible
economic benefits. We are working closely with our distributor and fast lube customer base on product and sales training programs, developed to enhance their profitability and capitalize on market opportunities. Our growing, premium product line is designed to maximize the bottom line of any business.”

Through their 44 state distribution network, NAL offers PureGreen lubricants (an earthfriendly product line), Puratech Multi-Vehicle ATF, Puratech Supreme Motor Oil, Puratech Syn-Blend Motor Oil, Puratech Hi-Mile Motor Oil and Puratech PureSYN Motor Oil (now available in quarts) in their profit boosting line-up.

NAL was founded in 1999 to provide a fresh bulk lubricant alternative. The corporation was created to combat the rapidly rising costs of lubricants and the shrinking profit margins of lubricant distributors and installed oil change facilities while maintaining a national commitment to premium product quality. NAL’s innovative program covers 44
states and supports over 900 national accounts. For more information about NAL, visit www.nalube.com, call (480) 624-5800 or email info@nalube.com.

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North American Lubricants, Co. (NAL) has announced the introduction of its Pure Green product line, developed to capitalize on the substantially growing demand for earthfriendly lubricants.

Formulated with high-quality base stocks refined from collected used oil, Pure GreenTM delivers the unique combination of ultimate performance and environmental conservation. Through the utilization of select re-refined base stocks and advanced additive systems, Pure GreenTM lubricants offer performance equal to or greater than conventional lubricants and have similar price levels. Valuable environmental benefits are created through preserving irreplaceable petroleum resources, reducing reliance on foreign crude oil, reducing the amount of used oil that is improperly disposed and drastically reducing air pollution caused by used oil that is down-cycled and burned.

NAL President Shane Terry proclaims, “The introduction of Pure GreenTM to our premium brand continues our corporation’s dedication to deliver new solutions to the lubricant market and maintains our commitment to proactive environmental responsibility. Antiquated re-refined lubricant supply chains had limited availability, a limited product line and did not meet modern performance specifications.” Terry continues, “After solving these problems, we received considerable interest from a wide-range of market segments including; municipal (State, City, County) service facilities, trucking, garbage collection, construction and agricultural. This is a significant addition to one of the most valuable lubricant programs in the nation.”

NAL Chairman Larry Read added, “We are also very excited about the initial demand voiced from our important customers in the installed oil change market. We see an immediate opportunity for our fast lube partners to use our earth-friendly product line to capitalize on the growing percentage of environmentally sensitive consumers and fleet accounts within their customer base. This service will add needed revenue and margin while differentiating themselves from local competition and enhancing customer retention.”

NAL will offer passenger car motor oil, heavy-duty engine oil, hydraulic oil and universal tractor fluid within the bulk Pure Green product line. The product will be strategically introduced through NAL’s growing distribution network in 44 states.

Read founded NAL in 1999 to provide a fresh bulk lubricant alternative. The corporation was created to combat the rapidly rising costs of lubricants and the shrinking profit margins of lubricant distributors and installed oil change facilities while maintaining a national commitment to premium product quality. NAL’s innovative program covers 44 states and supports over 600 national accounts. For more information about NAL, visit www.nalube.com, call (480) 624-5800 or email info@nalube.com.

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This post is a synopsis of the history and the current status of the GF-4/SM development and approval process. In the interest of brevity this paper will only deal with the high points and relevant activities. Please note that this paper is based on the beliefs of the North American Lubricants Company and its executives and is just one view of the situation. We encourage all parties to investigate this market dynamic through all means possible and form their own decisions as to the status of the program and the impact on their business.

GF-4/SM Motor Oils

In 2001 the automakers under the umbrella of ILSAC began working on a program to quickly develop and implement a new category of oils to be marketed under the GF-4 banner. These oils as originally proposed were radically different then anything that was currently being sold in the marketplace. They were being designed to handle a number of issues but the driving factors were emission system protection and longevity as well as fuel economy.

The initial proposal by the automakers was for GF-4 oil to be in the market by mid-year 2003 with Sulfur and Phosphorous maximums of .05 percent. This Sulfur/Phosphorus requirement was put in to assist the automakers in their efforts to meet the new EPA’s Tier 2 Bin 5 0.07gm/mile NOx 120k mile emission and catalytic converter standard by reducing these suspected catalytic converter poisons.

The potential problems with Sulfur and Phosphorous reduced to the .05 percent levels are in the areas of wear protection especially when you put these oils in pre-2004 automobiles.

In addition to the chemical impacts on wear as identified above, the automakers were looking at reducing the viscosity of the oils they recommended to 0WXX levels which also would impact wear protection. This viscosity change was an effort by the automakers to improve their overall corporate fuel economies.

The two major concerns around these intended changes were back-fill-capability and product cost. The initial industry beliefs were that you would not be able to back-fill this product into older vehicles and the cost of these new oils could increase by several dollars per gallon when compared to the current GF-3/SL products. It was felt these substantial cost increases would be a result of new additive technologies needed at these Sulfur/Phosphorus levels and the need to use more expensive base oils such as group II, II+ and group III base oils and the potential for short supply of these premium base oils.

Since that time there has been very effective involvement in this process by AOCA and ILMA as well as most Oil Companies, the EPA and others. The end result is these various groups have been able to negotiate a number of positive changes to the proposed GF-4 category and the AOCA played the major role in delaying the implementation of GF-4 motor oils by one year.

So, where is the GF-4/SM process today?

It appears GF-4 products will finally be available for licensing on July 31, 2004 with the current licenses for GF-3 products to be available for use through April 30, 2005. (The reason I say it appears is that AOCA, ILMA and the automakers are still involved in discussions with the EPA on product availability and product education of the consumer)

As a result of AOCA’s outstanding work, it also appears that the EPA’s Certification and Compliance Division will require that the automakers and possibly the oil companies develop and implement a program of promotion and education about GF-4 oils and the needs for the same. This program will very likely be aimed at both installers and consumers. An important element of this promotion and education program will likely be some form of documentation from the automakers, that the installer can give to the consumer explaining why they need to use the more expensive GF-4 oils in their cars. The idea is to take the burden of explanation off of the installer and to alleviate concerns of motorist that the installer is just trying to sell them more expensive oil.

GF-4 products will have Sulfur and Phosphorus maximums that are lower than GF-3/SL oils but that are higher at 0.08 maximum (0.06 minimum) for Phosphorus than the automakers originally wanted. Additionally, the automakers also gave some on Sulfur agreeing to accept 0.07 for 10WXX grades but staying with the requested 0.05 for 0WXX and 5WXX grades.

The cost increase for a GF-4 product when compared to a GF-3/SL product should be less then 50 cents per gallon. The reason for these smaller than feared cost increases are the changes in the automakers requirements for the products and the ability of the additive companies to formulate GF-4 products with a substantial amount of premium group I base oils for the 10W30 viscosity and smaller amounts for the 5W30 viscosity oil. This base oil breakthrough allows the use of lower priced base oils and takes significant pressure off of the group II base oil supply situation.

We believe the product will still enter the market place with performance questions and unknowns relative to it suitability in older (pre 1996 especially) automobiles.

We also believe many of our customers will maintain the GF-3/SL product as their main line bulk motor oil for at least the next year, filling their needs for GF-4 products from quart bottles or drums.

Those are the issues revolving around GF-4 that appear to be relatively clear in where they are going. However, there is still one very big question and that is will API’s new SM category align with the GF-4 products or will they break their historical position of alignment and take SM oils a different direction. Obviously the automakers want them to align but there is significant resistance from the Oil Companies through API to accept all of the ILSAC GF-4 requirements for SM oils. If the Oil Companies have their way, they will retain the right to manufacture oil that meets many of the GF-4 requirements yet deviates in the areas of Sulfur and Phosphorus content. The oil companies want to set SM oil requirements at 0.10 maximum for Phosphorus versus the GF-4 maximum of 0.08 and Sulfur maximums of 0.1% versus the GF-4 maximums of 0.07% for 10WXX oils and 0.05% for 0WXX and 5WXX oils.

The oil companies argue that they sell oil in many countries around the world where the GF-4 Sulfur and Phosphorus levels are not required and where there are significant differences in base oil quality and in vehicle and customer requirements. The automakers response is their cars go many places around the world, they need consistency and they want GF-4 oils to be available everywhere. The automakers are threatening to place language in their owners’ manuals recommending against the use of SM motor oils unless they also contain the Starburst.

The API’s position on SM requirements should be better defined after their mid-March ballot of their members. At last count the API’s members were leaning toward SM oil that deviates from the historical position of aligning the API’s performance requirements with the ILSAC GF performance requirements.

We hope this paper proves helpful in the understanding of the GF-4 process and current status.

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