Counterfeit spare parts warning

The car industry is growing increasingly nervous about the number of fake or replica parts infiltrating Australia.

Reports of oil filters being stuffed with toilet paper and brake pads containing compressed grass have caused alarm among car manufacturers.

But the industry admits it is at a loss to prevent the import of bogus parts -- many of which look like the genuine article, in the genuine packaging -- without the help of Customs and other Federal authorities.

Last year 4300 counterfeit parts were seized by Customs from a workshop in suburban Melbourne.

The haul prompted Toyota and other mass-market manufacturers to assist Customs in ways to detect fake parts from the genuine articles.

In some cases the parts are bought by repairers who believe they have bought the real deal. In other instances, repairers are obtaining the parts knowing they are fake.

But counterfeit parts are now starting to appear for luxury vehicles, prompting Mercedes-Benz to increase the scrutiny of its parts distribution and auditing processes.

For example, its computer system now correlates parts inventories with service work carried out by each dealership and can check if there are any discrepancies.

"We've not had any reason to have a particular cause for concern but we are taking steps to at least make sure that every part that goes into a Mercedes car at a Mercedes dealership is the genuine article," said Mercedes-Benz Australia spokesman David McCarthy. "I wouldn't even call counterfeit parts sub-standard, they're way below that. They're actually risking people's lives."

He said any dealer found using counterfeit parts would be "in serious trouble" and could risk losing the dealership franchise.

"Hopefully no dealer would be stupid enough to risk the loyalty of their customers; it's the most important thing they have," McCarthy said.

 The peak body of the car industry has re-issued its warning to any workshop, dealer, repairer or distributor who may be considering importing or fitting a counterfeit or sub-standard part to a car.

"It is a criminal act, pure and simple," says the chief executive of the FCAI, Andrew McKellar. "Anyone who willingly puts a motorist's life at risk ought to be aware of the consequences not only for that motorist but also for themselves."

He said it was "only a matter of time" before an accident was deemed to be caused by a counterfeit part.

"I'm sure if a counterfeit part were deemed to the cause of an accident, then the authorities would use their powers to trace the source of that part and who fitted it to the vehicle."

He believed most repairers fitting counterfeit parts probably believe they have the genuine item.

"If [the price] seems too good to be true, it probably is [a fake]."

He said a counterfeit part goes "beyond the theft of someone else's trademark and property, but takes the crime into [an] area that could cost someone their life."

Toyota Australia says it is regularly notified of the importation of counterfeit parts.

"There are usually inconsistencies with markings on packaging material and the parts themselves, indicating that parts are counterfeit," says Divisional Manager for Toyota's Customer Service Division, Matthew Callachor.

"It is often quite obvious to us that certain parts are not authentic Toyota items, but to busy workshop owners, or an untrained eye, it would be easy to overlook."

One of the problems for the industry is that it is difficult to measure just how widespread the problem is.

"It is difficult to trace or measure the trade in counterfeits, but it is worrying nonetheless," Callachor said.

Counterfeit parts are made cheaply overseas and are offered on the Australian market for a fraction of the price of a genuine item. There is no way of ascertaining the quality of material, testing process or reliability of the parts. In the case of the 4300 parts seized in Melbourne last year the importer voluntarily forfeited the seized goods and provided information about the supplier, located in China.

Car makers deny the awareness campaign is designed to boost sales of genuine parts.

"There is already strong competition among rival brands [to keep parts prices down]," says McCarthy. "And there is enough [profit] margin in each item for the dealer not to have to go looking elsewhere for a cheaper, inferior product."

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