Blenders are now getting word that General Motors is introducing a new royalty program for DEXRON® VI automatic transmission fluid. The program goes into effect on July 1, 2023.

The fee in the first year of the program is said to be 50 cpg on branded sales and there are additional fees for sales to re-branders. Fees for branded product will escalate on July 1, 2024 and again on July 1, 2025 to 70cpg and 90cpg, respectively. The fees for rebranded product will also escalate on those anniversary dates.

According to some marketers, news about the program leaves many questions unanswered, namely, how will the fees be paid and to whom will they be paid? Further, who will be responsible for reporting to GM on the volumes sold as branded and rebranded? From what some understand, GM will obtain volume data from additive suppliers based on their sales of DEXRON® VI additives to their accounts. Assuming this is the case, some express concern about reporting accuracy and integrity across the US market.

Let JobbersWorld know what you think about the new program.