Wolf: ready for the future car and oil market

In September 2012, Wolf presented its rebranding: the entire range changed its look & feel, but most importantly the Wolf lubricant range was updated based on three major market drivers: emissions legislation which is inspiring manufacturers to develop smaller engines and after-treatment systems; fuel economy made necessary by climatic change and economic pressures; and the need for active oils which give vehicles the durability to endure alternative fuel, city driving and smaller engine size.

Petroleum additives formulator en manufacturer Infineum describes the changing car and oil market in the article “Megatrends matter” in its magazine Insight. They conclude for good reason that the companies, which are able to focus and adapt to the rapidly changing environment, who invest in continuous innovation, and who are ready for an effective communication with their increasingly sophisticated customers, will benefit from these megatrends and will see a bright future.

Wolf always considers these market trends when taking decisions about new engine oils. As a result, Wolf launches several new engine oils this month to get more fuel economy and durability.

A summary of the identified market trends in the article:

  • Macro Economic Environment

The mature markets (USA, Europe, Japan) will continue to see the lowest vehicle sales. Asia, and China in particular, are the regions where car sales is on the rise and it is there that a new trend is emerging- Chinese and Indian car producers are starting to offer lower cost vehicles and looking for an entry into the mature markets.

Wolf developed an engine oil specifically for Asian and US vehicles.

  • Climate Change Debate

CO2 emission limits and fuel economy targets are going to tighten, forcing the OEMs to invest in new technology. Maintaining profitability will not be easy, as customers are reluctant to pay a premium for the greener vehicles.

  • Legislation

Environmental concerns are pressing the governments to introduce taxation on larger vehicles. At the same time, the consumer preference for larger cars does not always follow this trend. As a result, the extremely challenging CO2 regulations may represent a significant threat to OEM’s, lubricant’s, additive and fuel supplier’s cash flow.

Discover the Wolf ECOTECH engine oils

  • Technology challenges

Electric vehicles are entering the market, but full electrification is not likely before 2025. Reductions in CO2 will mainly result from changes in the convention internal combustion engine. OEMs look in the direction of alternative fuels, second generation turbo charging, engine downsizing, advanced automatic transmissions, incorporation of dual clutch and continuously variable transmission, and the use of new materials.

  • Model mix

Consumers in mature markets are gradually switching to smaller cars. OEMs which traditionally manufactured large, premium class vehicles, responded by developing a ‘premium’ small car segment.

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  1. Pingback: Wolf lubes: new products overview 2013 Q1 | Wolf Lubes Blog

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