The Value of Performance - Lubrizol

The Value of Performance 

Engine Oils Marketing – October 2011 

UEIL 

© The Lubrizol Corporation 2011, all rights reserved

The Year is 1994 

• Brazil win the Soccer World Cup 

• OJ Simpson is facing charges in 

the US court system 

• The Channel tunnel opens 

between France and England 

• ANC triumphs in first multiracial 

elections and Nelson Mandela 

becomes president of South 

Africa 

• Croatian born Goran 

Ivanisevic is runner up at the 

Wimbledon Tennis 

Championship 



• Imagine that Goran Ivanisevec is driving from his home 

country to Wimbledon is a new diesel powered car 

meeting the newly adopted Euro 1 specification. 

• The distance is 2,385 kilometres. If the car was meeting 

the Euro 1 limits for particulate emissions, the total 

amount of particulate matter produced would be 334 

grams. 

2,385 x 0.14 = 334 

Distance 

Travelled / Km 

EURO 1 Limit 

g/Km 

© The Lubrizol Corporation 2011, all rights reserved 

Total Mass of 

Particulate / g 

2,385 Km


• If that same journey of 2,385 kilometres were conducted 

today in a modern diesel powered vehicle meeting the 

latest Euro 5 emission standards, the total amount of 

particulate matter produced would be 11.9 grams. 

400 

300 

200 

100 

0 


Particulate Matter Produced 

1994 2011 

96.4% Reduction 

Significant Progress has Been Achieved in Emissions Reduction

Particulate Matter 

The Progress in Passenger Car Diesel Emissions 

0.14 

0.10 

0.05 

0.025 

0.005 

EURO 4 


EURO 3 

EURO 6 EURO 5 

0.08 0.18 0.25 0.5 

EURO 1 

EURO 2 

EURO Emissions Standards Represent Significant Reductions in Harmful Products of Combustion 

(No Nox limit for Euro 1 and Euro 2 for diesel car emissions) 

NOx

6 

The importance of Emissions Control 

• Studies by the EPA indicate exposure to particulate matter causes serious health 

problems. 

• Long term exposure problems include: 

– Reduced lung function 

– Chronic bronchitis 

– Premature death 

• Short term exposure problems: 

– Lung disease 

– Asthma 

– Acute bronchitis 

– Respiratory infection 

• Other problems include: 

– Heart attacks in patients with 

heart disease 

– Arrhythmias 

Up to 600,000 deaths per year are associated with airborne particulate matter* 


* Source : World Health Organisation

7 

Passenger Car Vehicle Hardware Changes 

• The introduction of more sophisticated hardware to realize the improved 

emissions control will provide significant challenges for engine lubricants 

Gasoline 


Euro 3 

2000 

Euro 4 

2005 

Euro 5 

2009 

Euro 6 

2014 

Engine design PFI PFI + GDI T-GDI T-GDI 

Aftertreatment TWC TWC TWC TWC +GPF 

Diesel 

Euro 3 

2000 

Euro 4 

2005 

Euro 5 

2009 

Euro 6 

2014 

Engine design IDI + DI DI DI DI 

Aftertreatment EGR EGR +DPF EGR +DPF EGR +DPF +SCR 

Source : Lubrizol 

KEY Engine design types Aftertreatment system types 

PFI Port fuel injection gasoline TWC Three-way catalyst 

GDI Direct injection gasoline GPF Gasoline particular filter 

T-GDI Turbo charged GDI EGR Exhaust gas recirculation 

IDI Indirect injection diesel DPF Diesel particulate filter 

DI Direct injection diesel SCR Selective catalytic reduction 

A combination of engine design changes and after treatment devices are utilized

8 

The Demand for higher Quality Lubricants 

• Changes in vehicle hardware can increase severity 

Indirect 

injection 

Nonturbocharged 

No EGR 

Basic or no 

aftertreatment 

Maintaining Durability will Continue to Drive Increases in Engine Oil Performance 


Direct 

injection 

Turbo 

charging 

Exhaust gas 

recirculation 

Advanced 

aftertreatment 

= 

= 

= 

= 

Greater deposit protection 

and soot handling 

Greater protection against 

thermal degradation 

Greater soot handling and 

corrosion protection 

Aftertreatment compatible 

additive technology

9 

The Emergence of Low SAPS Lubricants 

• The changes in engine design and the introduction of after treatment devices 

has led to the introduction of a specific family of high quality engine lubricants. 

• In 2004 ACEA formally introduced the ‘C’ category of passenger car lubricants. 

Specifically designed for vehicles fitted with after treatment devices where 

traditional ‘higher SAPS’ lubricants can potentially damage vehicle components. 

≥ 3.5 HTHS 

≥ 2.9 HTHS 

A Specific Family of Passenger Car Lubricants has Emerged 


≤0.8% 

Sulphated ash 

ACEA C3 

ACEA C2 

≤0.5% 

Sulphated ash 

ACEA C4 

ACEA C1

10 

Associated OEM Requirements 

• The ACEA categories form the framework for several OEM requirements. 

• Many OEMS have several specifications within a particular category, mirroring 

the engine design platform and after treat device complexity. 

≥ 3.5 HTHS 

≥ 2.9 HTHS 

Many OEM’s have Specifications that Require LOW SAPS Lubricants 


≤0.8% 

Sulphated ash 

BMW LL-04 

MB229.31 / MB229.51 

Porsche C30 / A40 

VW50400/50700 

VW 50200/50500/50501 

GM dexos 2 

PSA B712290 

≤0.5% 

Sulphated ash 

Ford 913-C 

Renault RN0720 

Ford 934-B

The High Cost of Lubricant 

Development 

The high cost of engine test programs 

is well published. An ACEA C3, 

VW504:507 test program can 

typically cost 1.5 million dollars. 

However, this is by no means the 

complete picture. Before an additive even 

reaches a test engine, there are significant 

costs associated. In the case of top tier engine 

lubricant additives these can typically be in 

excess of 5 million dollars! 

A further consideration is the time it takes to 

progress an additive from conception to reality. 

The total time span can typically be 5-6 years. 

There are a Lot of Hidden Costs in Bringing Top Tier Lubricants to Market 


Finished Passenger Car Lubricant Pricing Analysis 

Finished lubricant pricing has 

been obtained in the following 

countries: 

UK 

France 

Germany 

The following channels to 

market were used for the 

analysis: 

Garage Forecourts 

Workshops 

Vehicle Dealers 

Retail Outlets 

Independent Pricing Analysis Conducted in 3 Geographical Markets 


Finished Lubricant Pricing by Quality Level 

Results of a European Survey conducted by a Third Party Independent Research Group 

VW 504:507 

Low SAPS 5W-xx 

Upper Mainline 0W-XX 

Upper Mainline5W-XX 

Mainline 10W-40 



€6.7 

€12.09 

€11.02 

0 5 10 15 20 25 

Price/cost per litre (Euro) 

Lubricants were categorised into 6 different quality levels. The results above reflect the 

average pricing reported within the following channels to market: 

Retail : Workshop : Forecourt : Dealer 

AVERAGE PRICING 

€18.39 

€17.93 

€19.87 

Top Tier Lubricants are Retailing for Over 3 Times the Price of Mainline 15W-40

Finished Lubricant Pricing by Quality Level 

Results of a European Survey conducted by a Third Party Independent Research Group 

VW 504:507 

Low SAPS 5W-xx 

Upper Mainline 0W-XX 

Upper Mainline5W-XX 




€6.7 

€12.09 

€11.02 

0 5 10 15 20 25 

Price/cost per litre (Euro) 

€18.39 

€17.93 

€19.87 

Two distinct pricing levels can be seen with mainline and upper mainline 5W-xx HI SAPS 

oils forming one tier and upper mainline 0W-xx and LOW SAPS oils forming the higher 

value tier. 

Higher Quality Lubricants Command Higher Value in the Market

What About the Future? 


What about Future Trends? 

• So far we have seen that the drive towards lower 

emissions, with the emphasis on NOx and Particulate 

reduction has resulted in a new range of high quality 

engine oils being introduced. These top tier oils 

command a higher price level in the finished oil 

marketplace compared to previous generation market 

general engine oils. This trend will continue as we face 

the challenges of EURO 6 and beyond. 

• We are now seeing a big emphasis on fuel economy. 

This is driven on several fronts, namely : 

– Reducing the Cost of Ownership 

– Reducing CO2 Emissions 

– Reducing Fossil Fuel Consumption 



Environmental Drivers for Fuel Economy 

End User economics is not the only 

driver for improved fuel economy. 

Legislators have determined that 

carbon dioxide is a key contributor to 

global warming and that man made 

emissions of this gas need to be 

reduced. 

Take an average family car weighing 

1600kg with a fuel tank of 60 litres 

capacity. By the time the tank is filled 

10 times with gasoline, the amount of 

CO 2 produced is equivalent to the 

weight of the car!* 

O2 C8H18 8CO2 + 9H2O Clearly Something Needs to be Done to Reduce CO 2 Vehicle Emissions 


* Assumes SG of 0.88

19 

OEM status against EU CO 2 limits (2009 figures) 

g CO 2 / km on NEDC cycle 

200 

190 

180 

170 

160 

150 

140 

130 

120 

110 

Fiat 


Suzuki 

Source; http://ec.europa.eu/clima/documentation/transport/vehicles/cars_en.htm 

Toyota 

Mazda 

Renault 

GM 

PSA 

Honda 

Ford 

Volkswagen 

Hyundai 

Daimler 

BMW 

100 

1,000 1,100 1,200 1,300 

Vehicle Mass (kg) 

1,400 1,500 1,600 

• Automakers will have to reduce CO2 emissions from new cars to 130 grams per Km 

by 2012 / 2015. With an additional 10grams coming from complimentary measures 

such as the use of biofuel. 

• 65% of new vehicles will have to comply by 2012, 75% by 2013, 80% by 2014 and 

100% by 2015. 

• A new objective of just 95 grams per Km was fixed for 2020. 

• Penalties will be imposed on a sliding scale. Manufacturers that exceed their target 

by more than 3 grams will pay 95 euro per excess gram. Lesser transgressions will 

be charged between 5 and 25 Euros.

Once Again.. The Demand for Higher Quality Lubricants 

20 

• Improvements in Fuel Economy can lead to a more severe 

operating environment for the engine oil. 

Heavier 

viscosity 

Grades 

Conventional 

Fuels 

Standard Oil 

Sump Sizes 

Normally 

Aspirated 

Engines 

Improved Fuel Economy whilst Maintaining Engine Durability is Key 


Lighter 

Viscosity 

Grades 

= 

Bio Fuels = 

Smaller Oil 

Sumps = 

Turbo- 

Charged 

Engines 

= 

Greater wear protection to 

address durability concerns 

Higher protection against 

sludge and piston deposits 

Higher temperature and 

associated oxidation control 

Higher temperature and 

associated oxidation control

Summary 

• The move towards lower SAPS, high performance oils will continue. 

This will continue to increase both the cost of development but also 

the potential for higher finished lubricant costs and greater 

differentiation in the marketplace. 

• The push for greater fuel economy will place huge technical 

challenges on the engine oil. We will require oils that provide fuel 

economy, not just for the ‘in warranty period’, but with potential 

legislation ensuring fuel economy over the life time of the vehicle, it 

is important to have fuel economy maintained even when the 

engines are older. 

• Even today, some OEM’s are exploring the possibilities of 0W-10 

oils with a 2.3 HTHS. If such oils are to become commonplace, it is 

essential we provide the necessary engine durability. 

• Delivering fuel economy whilst maintaining engine durability will 

prove to be a major challenge in the coming years. The demand on 

tomorrows engine oils will be greater than ever. 


22

The Value of Performance - Lubrizol

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