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JobbersWorld has learned that CAM2
will produce and offer licensed dexos1™ product. But according to a CAM2's
announcement, it does not agree with the approach taken by General Motors
in the implementation of the dexos™ service category and product line. With
regards to General Motor's approach, CAM2 says, "We believe this approach
enacts a severe cost penalty for the users of the dexos™ products as mandated
by General Motors."
In the following letter to its
marketers, CAM2 says:
-----------------------------------------------------------------------------------------------------------  CAM2 has been and
remains committed to supplying its' customers with lubricating products that
meet or exceed the latest specifications and are manufactured to meet the highest
quality standards.
Therefore, in an
effort to clear up some of the uncertainty that may exist in the market and
with our customers, CAM2 is proud to announce that it is CAM2's intent to have
a fully licensed dexos1™ product available for our customers with vehicles that
require a dexos1™ product. CAM2's new dexos1™ product will be licensed with
General Motors at the more stringent dexos1™ service level and with ILSAC and
API at the GF-5 and SN-RC performance levels While we have not yet
determined the final production cost and our market price point for CAM2's
dexos1™ product offering, it is clear, that as a result of the General Motors
requirements to obtain a dexos™ license shown in more detail later in this
document, these products will cost substantially more to license than
traditional non-dexos™, API/ILSAC approved motor oils.. GM DEXOS™ LICENSE COST
DETAILS
Any company wishing to
manufacture and/or market a GM licensed dexos™ product will need to pay to
General Motors: A) An annual licensing
fee for each viscosity grade a company intends to produce and sell under its
dexos™ license. B) A one-time sampling
fee for each viscosity grade a company intends to market under its dexos™
license. C) A Royalty Fee
calculated using each Blender's market and growth potential parameters as
calculated by a third party consultant hired by GM and based on an average rate
of US $0.09 per quart (liter) or $0.36 per gallon of dexos™ engine oil sales
throughout the term of the license. Jack Baker, President of CAM2
says "We do not agree with the approach being taken by General Motors in
the implementation of the dexos™ service category and product line. We
believe this approach enacts a severe cost penalty for the users of the dexos™
products as mandated by General Motors. However, to live up to our
commitment to our customers that purchase General Motors vehicles, that we will
supply them with premium quality products that meet or exceed all their OEM's
requirements, we have decided to provide to our customers a fully licensed
dexos1™ product." Mr. Baker also says, "For our many customers that
do not drive General Motors vehicles and should not have to support the General
Motors program, we will also offer a fully licensed GF-5/SN-RC product that
does not incur General Motors dexos™ licensing fees and we expect to have this
product available for our customers on the first day that these new API/ILSAC
GF-5/SN-RC products can be sold." At CAM2 we are committed to
providing all of our customers with the finest products we can make that meet
or exceed their needs at a fair and value added price. | 
