Würzburg/Germany, April 10, 2007
If things are done properly, then engine-lubricating oil is one of the last things that provide a good profit margin at car dealerships. That is to say that car garages and similar businesses certainly generate earnings through oil - which leaves precious little to be earned by pure car traders. Now, however, car manufacturers want to have a stake in the earnings, according to a report in the latest issue (no. 15) of the Würzburg-based specialist magazine for the German motor trade, "kfz-betrieb", which will be going on sale on April 12, 2007.
Essentially, two basic strategies have established themselves in the German motor trade as far as engine oil is concerned: a certain number of businesses use mass-produced types of oil that are available in any supermarket, with which they can perform oil changes for a reasonable price. Others seal off their market and deny car drivers the possibility of comparing prices by focusing on types of oil which can only be bought from specialist sources and, in order to sell the products successfully, they primarily put forward arguments in favor of good quality. It is up to the consumer, then, to choose the type of oil he would prefer to have in his car engine.
That, at least, was the case until now ... because car manufacturers are now also beginning to realise that there is money to be earned from engine lubricants. They have started to develop their own brands of oil which they market under their own name, propounding the better quality of the branded product. Mercedes-Benz is the latest example of a car manufacturer joining the bandwagon. It must be said that car manufacturers' own makes of oil do not just rob car repair garages of their freedom of choice. Ultimately, the end-users are also influenced indirectly by the new trend.
In fact, however, "kfz-betrieb" reports that using oil that is not produced by car manufacturers does not, as a rule, give rise to any problems of poor quality. After all, car repair garages have always complied with car manufacturers' specifications when performing oil changes on cars. There are, for example, plenty of engine lubricants available on the market for Mercedes cars which do a good job even though they don't bear the same brand name as the vehicles themselves.
"kfz-betrieb" is published by Vogel Auto Media, Würzburg/Germany and is the most widely read specialist magazine in the German car trade, celebrating its 95th anniversary in 2005 and fulfilling the role of official publication of the German vehicle trade association (ZDK), which represents the interests of over 40,000 car dealer businesses and repair garages.
If you have any queries, please feel free to contact:
Konrad Wenz
Head of the "Services & Technology" Department
Editorial office of "kfz-betrieb" - weekly journal and website
Vogel Auto Media
97064 Würzburg
Germany
Phone +49 (0)931-418-2556
Fax +49 (0)931-418-2050
E-mail: konrad_wenz@vogel-automedien.de
