ExxonMobil to Offer Both Brands to Some Distributors
Marketers Look for Help to Lower Diesel Prices
UST Leak Rate Rising in Hawaii
California Launches New Program to Scrap Old Cars
Phoenix, Salt Lake City Best to Launch a Small Business

EXXONMOBIL TO OFFER BOTH BRANDS TO SOME DISTRIBUTORS

FAIRFAX, VA. — ExxonMobil Corporation has announced today that it will offer some of its distributors both the Exxon and Mobil brands of gasoline and diesel for marketing.

Prior to this decision, distributors had been limited to the brand they had been offering prior to the merger of the two oil companies.

ExxonMobil officials said the opportunity to market the two brands will be available to “qualified Exxon and Mobil distributors in selected areas of the country.”

“Since most fuels distributors have at least one additional brand, our goal is to offer Mobil as the additional choice for the fuels distributor in areas where Exxon has a significant presence,” said Jim Carter, Vice President of U.S. Fuels Marketing, explaining the company’s strategy.

“From the distributor’s standpoint, dealing with two major brands through one supplier is a phenomenal opportunity,” Carter added. “Both brands have a significant and loyal customer base and distributors are provided more potential for growth without conflict within their markets. They can also benefit from the services that Exxon and Mobil offer customers; for example, cross-acceptance of Exxon and Mobil proprietary credit cards is a reality, and we soon plan to extend Speedpass to all Exxon service stations.”

The cross-branding will be available only for diesel and gasoline; ExxonMobil says it will not make any changes in the distribution of its branded lubricants.

MARKETERS LOOK FOR HELP TO LOWER DIESEL PRICES

SACRAMENTO, CA. — With diesel prices spiraling out of control in California, the California Truckers Association and the California Independent Oil Marketers Association met with the Governor’s office to try and get the government to take some action.

Diesel prices in California — which operates on its own special formulation for the fuel — were setting record levels in September.

Members of the two associations met with the Governor’s Undersecretary for Government Affairs “to discuss the difficulties truckers, other diesel consumers, and petroleum marketers are having as a result of fuel shortfalls and the resulting higher prices.”

CIOMA Executive Vice President Jay McKeeman reportedly told the Undersecretary “that a major factor in the current price run-up is a loss of confidence in California refineries’ ability to meet the demand for fuel from California consumers.”

McKeeman asked for a moratorium on future unique fuel specifications until assurances can be made that “abundant” supplies of the new fuel will be available. California is currently facing a new set of diesel fuel specifications that will create a fuel even more difficult to produce than the current CARB II diesel formulation on the market.

The group also asked that state sales taxes be suspended on fuels when “abnormal supply and pricing conditions exist” to keep prices lower to consumers.

UST LEAK RATE RISING IN HAWAII

OAHU, HI. — The number of leaks reported from underground storage tanks has risen as UST owners have installed leak detection equipment.

According to Hawaii’s Department of Health, the state recorded approximately 250 reports of leaks in the 1999-2000 fiscal year. This is a substantial jump in the number of leaks that have been reported since the Department began classifying the leaks in 1986.

The Hawaii Department of Health classifies a leak as a release or spill of 25 gallons or more.

CALIFORNIA LAUNCHES NEW PROGRAM TO SCRAP OLD CARS

SACRAMENTO, CA. — The state of California is launching a new Consumer Assistance Program (CAP) to pay people to scrap their older vehicles.

The program, which in some form has been utilized in California for the past 10 years, is designed to get older cars — considered higher polluting — off the road, cutting back on air pollution in the state.

The new program, announced in July, will pay $1,000 to consumers who volunteer their vehicles for retirement. Consumers who have received their DMV renewal notice and then failed their biennial Smog Check test can “jump-start” the process by dialing the Department of Consumer Affairs’ toll-free hotline at 800-952-5210. Eligible motorists can receive a check for $1,000 for turning in their car to be scrapped.

The Consumer Assistance Plan seeks to repair or retire 50,000 major polluters over the next four years.

“In keeping with Governor Davis’ commitment to environmental protection, California is paying eligible consumers $1,000 to retire their coughing clunkers,” stated Kathleen Hamilton, director of the California Department of Consumer Affairs. “This investment will help clean the air, give consumers a break and create a healthier future,” Hamilton added.

The Consumer Assistance Program is run by the Department of Consumer Affairs’ Bureau of Automotive Repair.

PHOENIX, SALT LAKE CITY BEST TO LAUNCH A SMALL BUSINESS

PHOENIX, AZ. — Two Western cities — Phoenix and Salt Lake City — top the list of the best large cities to launch a small business.

According to a recent study by Cognetics Inc., of Cambridge, MA., Phoenix and Salt Lake City with its neighboring Provo, UT., have the highest success ratings for launching a small business.

In the category of smaller metropolitan areas, Las Vegas, NV., comes in first place, edging out Austin, TX.

According to David Birch, president of Cognetics, the best areas for small business success tend to have good supplies of skilled labor, major airports, universities, and are generally described as “a nice place to live.”

What area did Cognetics list as the worst place to launch a small business? New York’s Albany area including Schenectady, Troy, and New York City.

Originally published in the October 2000 issue of O&A Marketing News.
Copyright 2000 by KAL Publications Inc.