Let’s Get Real About Counterfeit Materials

Author: 
Molouk Y. Ba-Isa, Arab News
Publication Date: 
Fri, 2006-02-03 03:00

Would you endanger your life daily, just to save a few riyals? Would you consider putting the lives of your family and friends at risk as well? That’s what many people do when they decide to use substandard spare parts in their cars. While we can feel concern for those souls, the truth is that at least they consciously made such a shortsighted choice. But what if unknowingly, you or your mechanic installed a counterfeit spare in your vehicle? Weeks or months later, during a critical high performance moment, the car’s engine could seize up or the brakes might not hold. The tragedy that could result is regularly witnessed on our highways.

That’s why Warren Hayday, manager, Investigations for General Motors (GM) Overseas Distribution Corp., takes his job so seriously.

“GM’s perspective is that if you don’t fit a proper part that meets the standard and has been tested and is approved, then you could be taking your life in your own hands,” he explained. “There have been instances of counterfeit brakes failing, fake oil filters exploding and substandard spark plugs melting into the engine. When any vehicle owner installs a counterfeit part, he runs the risk of the car he’s driving not performing to its intended levels. If that happens at a critical moment in the vehicle’s operation, no one can predict the outcome.”

Last year in the GCC, $167 million worth of counterfeit GM parts and packaging pieces were seized. In some cases the authorities found parts in boxes, so both the parts and packaging were considered counterfeit. In other cases, large quantities of counterfeit packaging materials were uncovered in local printing facilities and companies. Such operations sell the counterfeit packaging alone to others who then box up the spare parts.

“Sometimes the complete item is brought in from China, Taiwan or some other place, usually in the Far East. These parts already have the trademarks on the part and it’s already in the counterfeit GM packaging,” said Hayday. “Such fakes are increasingly difficult to get through customs in the GCC. The other and now more common way that counterfeits reach the market is that the products are bought in bulk, just a plain blue oil filter for instance, and when it arrives in one of the GCC countries then that filter will be packaged in an ACDelco or GM box. ACDelco is GM’s after-market brand used in our replacement parts program in this region.”

What exactly is a counterfeit part? Hayday stated that for GM, counterfeit parts are any part that’s made to copy one of GM’s parts and that also carries GM’s trademark. If a company manufactures a spark plug with no trademarks on it, then that is called an after-market part. If that part is tested and meets the standards of the local authorities, then that part can be legally sold in that country.

“When it becomes an offense to GM is when a GM trademark is used to sell that part — and that spare part wasn’t manufactured or licensed by us,” said Hayday. “So there are really two separate issues — the trademark side of things and then of course the safety and consumer protection side of things.”

GM works to stop both infringers of its trademarks and manufacturers marketing substandard parts for GM vehicles. Hayday admitted that it is easier to tackle the trademark infringers than to pursue people flaunting the safety aspect. The company does do testing of after-market spares and records the results to show to both professionals in the automotive industry and consumers. These tests demonstrate how quality processes and materials make a difference when it comes to spare parts.

Hayday strives to complement the roles played by the local authorities in the region. He often launches initial investigations of possible counterfeit operations based on tips he receives. Once the suspicions are confirmed, Hayday then turns to the authorities for the seizure of the counterfeits and possible prosecution of those involved in the illegal operation. GM also offers training to local officials on how to spot counterfeit parts and the company issues reports detailing the reasons why seized parts are counterfeit.

As for how consumers can be certain that a part is genuine and their vehicle is running optimally, Hayday’s advice is to purchase spares only from an authorized dealer.

“The parts most often counterfeited are oil filters, brakes, spark plugs, fuel filters, grills and pretty much anything that’s replaced regularly during vehicle maintenance,” said Hayday. “Generally counterfeits involve fast-moving spare parts. This is not a complete list though. We’ve seen that with certain popular vehicle models counterfeits have been made for nearly every part, whether body, accessory or mechanical — right down to the motor. If you buy a counterfeit part, basically all the manufacturer has done is reverse engineering of the genuine GM part and there are no quality guarantees.”

GM’s investigative division operates on a global basis. This means that when counterfeits are found in the Middle East, information on the source of those parts is relayed to GM investigators, often on the other side of the planet. Then they swing into action there against the perpetrators. This pincer operation aims to force the counterfeiters out of business. And there is still much work to be done.

“For the moment, in the Middle East more and more counterfeit parts are seized each year. That’s because we are constantly expanding our investigations into new markets. Jordan, Egypt and Algeria are the latest,” said Hayday. “We are also expanding more in the Far East. Everywhere we go we are linking market education with law enforcement. I think that now counterfeiters are aware that we are out there and we will continue the drive against them. I believe in the next three to four years you’ll see the amount of counterfeit product in the market coming down and then there will be less to seize as well. I look forward to that time.”

You can help in this effort. Confidentially report tips concerning counterfeit GM or ACDelco parts to [email protected].

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