October 3, 2017
Volume 7 Issue 7
JXTG Keeps Mobil Lubes
Japan’s JXTG Group will convert all of its 2,800 Esso- and Mobil-branded fuel stations in the country to Eneos by 2020, but will continue selling ExxonMobil lubricants at all locations, the companies told Lube Report Asia.
ExxonMobil sold its remaining 6 percent stake in TonenGeneral Sekiyu KK in February, before the latter merged with JX Holdings the following month to form an entity that holds around half of both the country’s fuels and lubricants markets.
JXTG decided to ditch the ExxonMobil trademarks for JX’s Eneos brand in the fuels market, but its lubes marketing arm, EMG Lubricants Godo Kaisha, will continue selling ExxonMobil’s Mobil products in stores – which is a vital distribution channel for the firm, according to a spokesman from JXTG Holdings, the group’s parent company. EMG also manufacturers Mobil lubricants.
In Japan, it’s common for drivers to get oil changes done during a stop for fuel, meaning gas stations are a major distribution channel for automotive lubricants.
“Adopting a single brand, Eneos, is the optimal brand strategy for JXTG,” the company said in a recent press statement. JXTG operates 3,325 fuel stations branded as Esso, Mobil and General and 10,243 as Eneos. “We will start making system adjustments from October and gradually replace the Esso- and Mobil-branded stations to Eneos,” the spokesman told Lube Report Asia.
“This decision does not impact our lubricants, chemicals and other businesses in Japan,” a spokesman from ExxonMobil Asia Pacific Pte. told Lube Report Asia. “EMG Lubricants remains our principal distributor of Mobil lubricant products in Japan.”
The Esso brand was established in the United States over 100 years ago as a trademark for Standard Oil, which later became Exxon. The Mobil brand was created in 1920 by Standard Oil Company of New York, one of Standard Oil’s predecessors, after its breakup by the U.S. government. In 1963 Socony Mobil Oil Co. changed its operating name to Mobil, and in 1999 it merged with Exxon to form ExxonMobil.