ILMA has received a formal response from General Motors about the Association’s request for temporary flexibility under the OEM’s Dexos licensing program because of the ongoing disruptions to global Group III base oil supply.

While GM acknowledged the severity and likely duration of current supply constraints, it declined to provide enforcement relief for affected licensees. Here are the key takeaways from GM’s response:

• No enforcement pause — GM explicitly stated that it “does not intend to suspend license terminations or other enforcement actions.”
• Expedited reviews available — GM will expedite evaluations of alternative base oils and formulations submitted by blenders and additive companies.
• Case-by-case evaluation — All submissions will be reviewed by GM on their individual technical merits.
• Ongoing monitoring — GM will closely monitor the situation and support transitions to approved alternatives, but without relaxing compliance obligations.

Despite clear acknowledgment that the current Group III base oil supply disruption is outside the control of blenders, GM is maintaining strict compliance expectations under its Dexos licensing program.

ILMA members with Dexos licenses have noted that, because of customer demand and for other reasons, it is typical for them to carry approximately one month’s forward supply in inventory. Once that inventory is depleted, companies that have not secured approved alternatives from GM may face serious commercial and licensing risk, including potential termination.

ILMA urges members with Dexos licenses to act now:

• Submit alternative base oils immediately to GM — Identify and submit technically justified Group III alternatives for GM evaluation without delay. Do not wait until existing inventory is exhausted.
• Engage additive suppliers to accelerate formulation adjustments and supporting data packages.
• Assess current base oil inventory and supply commitments to determine your timeline to potential disruption.
• Document compliance efforts, including supplier communications and efforts to source alternative base oils.

“ILMA appreciates GM’s response; however, we remain concerned by the OEM’s decision not to provide temporary enforcement flexibility under these extraordinary circumstances,” said ILMA CEO Holly Alfano. “While ILMA will continue to advocate for reasonable accommodations that reflect the realities of the global supply chain for Group III base oils, members should proceed on the assumption that GM’s current enforcement practices for its Dexos licenses will remain in place.”