Major automotive companies, including Volkswagen, are adopting new formulations of engine oil and lubricants to alleviate supply shortages.
Automakers such as Volkswagen, Stellantis, and Toyota have begun adopting new formulations for engine oil and lubricants to alleviate the severe supply shortage crisis triggered by the Middle East conflict. In the initial months following the outbreak of the conflict, automakers were able to maintain production using inventory; however, the high-quality base oil stocks previously sourced from the Middle East in Europe and the United States have now been nearly exhausted. Although automakers have found alternative lubricant suppliers, industry executives warn that the related supply sources remain tight, and any further disruption could easily lead to a supply cutoff. For global car owners, if the supply gap widens further, there will be price increases and delays in routine oil changes and maintenance. The price of Group III base oils has nearly tripled compared to pre-war levels, with market quotes in Europe and the United States at about $4,000 per ton. Holly Alfano, CEO of the Independent Lubricant Manufacturers Association, stated, "The capacity of alternative suppliers is limited, and if shipping is disrupted again, refineries shut down, or other supply disturbances occur, the market imbalance will deteriorate rapidly." She added, "The entire industry currently has very little room for error."
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