GM Recall Sparks Supply Chain Concerns Following Sudden Switch to dexos® R SAE 0W-40
Petroleum Trends International, Inc. – Publishers of JobbersWorld
General Motors has issued a large-scale safety recall affecting nearly 600,000 vehicles equipped with the 6.2L V8 L87 engine. The recall cites potential internal engine defects linked to crankshaft and bearing durability, which could lead to a sudden loss of propulsion. It applies to select 2021–2024 models, including the Chevrolet Silverado 1500, Suburban, and Tahoe; GMC Sierra 1500, Yukon, and Yukon XL; and Cadillac Escalade and Escalade ESV.
Under the recall procedure, GM dealerships will inspect affected engines. Units deemed fit for continued operation will receive an oil and filter change, and a new SAE 0W-40 fill cap. Critically, GM is mandating a change from the previously recommended dexos1 Gen3 SAE 0W-20 motor oil to dexos R SAE 0W-40.
This mid-year viscosity shift could have significant ramifications for the lubricants industry. If fully executed, the switch could displace approximately 570,000 gallons of 0W-20 motor oil while driving equivalent demand for SAE 0W-40 by year-end. The abrupt change creates volatility in inventory planning and purchasing patterns across the supply chain. Although the potential impact on volume accounts for only about 1.5% of U.S. passenger car motor oil (PCMO) demand, it is expected to significantly elevate the profile of SAE 0W-40—a viscosity grade that currently sees limited sales. In the aftermarket, consumers will likely face a price premium for this specialized oil.
While it is still too soon to determine how many vehicles will switch to 0W-40, the prospect of a widespread transition has raised concerns about potential supply shortages. The rapid shift could strain production capacities, leading to backorders and delays in fulfilling demand. Distributors, retailers, and quick-lube operators may face increasing difficulty securing adequate volumes, further complicating their ability to meet customer needs. A key challenge lies in the limited availability of dexos R-approved SAE 0W-40 motor oils. A review of General Motors’ official list of licensed dexos R products shows only four SAE 0W-40 formulations, all supplied exclusively by ExxonMobil. GM specifically recommends Mobil 1 Supercar dexos R SAE 0W-40 for the affected applications. This stands in sharp contrast to dexos1 Gen3 SAE 0W-20, which is broadly available and produced by nearly all major lubricant manufacturers.
As a result, dexos R-approved SAE 0W-40 oils are distributed by a much smaller pool of suppliers and may be challenging to procure. With such a constrained supply base, any surge in demand—such as that triggered by the recent GM recall—is likely to further strain availability.
Although other SAE 0W-40 motor oils can be found in the API licensee directory, only those supplied by ExxonMobil currently appear on GM’s official list of dexos R licensed brands. Expanding this list is likely to be lengthy, as the dexos certification procedure is rigorous and costly. Securing approval typically requires at least a year to complete all testing and administrative steps.
It is unclear whether GM has initiated efforts to approve additional products in light of the recent issue and associated remedy. The initial oil change under the recall is being performed at no cost to consumers, but is limited to service at GM dealerships. Consequently, it may take a considerable amount of time before other oils are approved and consumers are presented with broader options for service providers and oil brands.
The timing of the recall adds an additional layer of disruption. Taking place mid-year—after the majority of 2025 procurement plans have been finalized—it has the potential to significantly impact inventory allocations. Distributors are now faced with the need to reevaluate and adjust their ordering cycles, and in some cases, explore alternative supply sources to ensure sufficient volumes of SAE 0W-40 motor oil are available to meet updated demand forecasts.
While GM maintains that the recent change in oil viscosity is solely related to a specific crankshaft defect, the decision will likely reignite consumer skepticism toward low-viscosity motor oils. SAE 0W-20 has long been promoted for its fuel economy advantages; however, concerns persist regarding its performance in high-load and high-temperature conditions. The broader implications of this recall may extend well beyond the immediate issue, potentially influencing long-term consumer preferences and prompting original equipment manufacturers (OEMs) to reevaluate their viscosity recommendations and formulation strategies.
This development also raises questions about the real-world acceptance of SAE XW-20 oils, which are expected to be introduced in future Class 8 diesel engines under the upcoming PC-12 specification.
GM has emphasized that the issue is isolated to a single engine platform and does not indicate a broader change in its stance on SAE 0W-20, which remains its primary recommended engine oil. V8 engines have become increasingly uncommon in modern passenger vehicles, and SAE 0W-20 has seen widespread adoption since its introduction by Honda and Toyota in 2009 for most gasoline-powered applications. Today, it is one of the fastest-growing viscosity grades globally, supported by an industry-wide push for improved fuel efficiency and reduced emissions. Aside from this specific case, no significant or widespread issues regarding using SAE 0W-20 have been reported.
Note: dexos® is a registered trademark of General Motors LLC