MMT in Gasoline: A Warranty Concern for Future Car Buyers

Strategic Insights -

Future new-car buyers in Canada may face shortened warranties if gasoline companies continue to use the octane-enhancing additive MMT, says Mark Nantais, president of the Motor Vehicle Manufacturers Association. The trade group is advocating for the removal of MMT, citing concerns that it will gum up sophisticated "on-board diagnostics" in new cars. This could lead to reduced warranties, with some car makers considering limits of as low as 50,000 miles, compared to the standard 100,000 miles in the US. Meanwhile, Ethyl Canada and the Canadian Petroleum Products Institute argue that there is no evidence to support the auto makers' claims.

Key Takeaways:

  • The Motor Vehicle Manufacturers Association is pushing for the removal of MMT from gasoline due to concerns that it will damage "on-board diagnostics" in new cars.
  • If MMT is not removed, car makers may consider reducing the warranty to as low as 50,000 miles, compared to the standard 100,000 miles in the US.
  • The current warranty system may be affected by the widespread adoption of sophisticated "on-board diagnostics," which will reach 100% by the end of next year.
  • The trade group believes that government officials lack a clear understanding of the technical facts surrounding MMT, which is a concern for companies that import and use the additive.
  • The debate surrounding MMT has also sparked the interest of environmental groups, particularly Ralph Ferguson, a former Liberal cabinet minister who has advocated for the ban of the additive due to health concerns.
  • General Motors and Ford believe that MMT has already caused higher warranty claims, and that the proportion of new cars with diagnostic systems will increase from 80% to 100% by the end of next year.

Statistics:

  • 100%: The proportion of new cars with diagnostic systems by the end of next year (quartered by Ford and General Motors).
  • 80%: The current percentage of new cars with diagnostic systems.
  • 17: The average number of sensors in each diagnostic system that can be coated by MMT, according to the auto makers.
  • 50,000: The potential warranty limit if MMT is not removed from gasoline.
  • 100,000: The standard warranty in the US.
  • 20,000-30,000: The lifespan of GM's platinum-tipped spark plugs in kilometers before failing due to MMT-related issues.
  • 160,000: The equivalent warranty period in kilometers for GM's spark plugs.

Sources:

  • Mark Nantais, president of the Motor Vehicle Manufacturers Association, via Daniel Westell, "Future new-car buyers may face shorter warranties over MMT issue," Toronto Star.
  • David Wilson, president of Ethyl Canada, via Daniel Westell, "Future new-car buyers may face shorter warranties over MMT issue," Toronto Star.
  • Ralph Ferguson, former Liberal cabinet minister, via Daniel Westell, "Future new-car buyers may face shorter warranties over MMT issue," Toronto Star.
  • Roger Thomas, GM's manager of auto regulatory activities, via Daniel Westell, "Future new-car buyers may face shorter warranties over MMT issue," Toronto Star.