The latest car parts scandal hits Australia. And if it’s happening there, it’s happening here. Today’s story involves not just panel parts (which is bad enough) but safety components like brake parts, wheels and even air-bags. More than 6000 counterfeit car parts branded Ford, Holden & Toyota have been seized by Australian Customs and were manufactured in – you guess it – China. See more at http://www.paintandpanel.com.au/news/news/6-000-fake-car-parts-seized. Just last week we saw the announcement of the global air-bag scandal involving up to 300,000 NZ based cars, now another potential driver Health & Safety disaster. Or is it? Cynics might call the latest announcement PR protectionist spin from the car manufacturers? I think we all know that not all new car parts are actually produced by those brands. Tell us what you think?
CAN YOU TELL THE DIFFERENCE?
Tui
This is shocking and looks like a major fleet Health & Safety disaster waiting to happen. It will be up to Fleet Management providers to ensure company vehicles aren’t compromised, I’m sure we can’t rely on the government to police this black-market. How will Crash Management ensure air-bags and other body parts are genuine?
Crash Management
hi Tui and thanks for your post, you also pose a good question. It’s difficult to give assurances but we do agree that professional fleet management service providers are in the best position to take an interest and some responsibility for the issue and there are some mechanisms for doing this. For instance, Crash Management only contracts with Collision Repair Association repairers – Structural Repair certified when appropriate. This ensures the appropriate technical training , modern repair technology, methodology & equipment, and sound business practices – this is the front line of eliminating the use of substandard replacement parts. Unfortunately the intention can sometimes be compromised as the ultimate decision lies with the insurance appointed assessor. As they represent the insurance companies’ interests, some surprising decisions have been known in a few cases. Education & advocacy is the key and Crash Management serves the interests of the client. If there are any specific concerns, you’re welcome to pick up the phone and talk to us – we’re here to help. Thanks again for your post
Rob
They caught these jerks I saw this in the news. This isn’t just fraud its a major safety problem for car insurance claims, car damage repairs and the whole panelbeating industry. Off with their heads!
A recent raid in the United Arab Emirates saw the seizure of tens of thousands of fake and counterfeit car parts, which investigators said were most likely headed for Australia and New zealand.
The raid of a warehouse in Abu Dhabi’s Al Ain city found over 500,000 fake and counterfeit parts worth over $5.4 million (AUD) and was the largest of its kind in Abu Dhabi’s history.
Director of Nationwide Research Group Craig Douglas has said that the global fake car parts market is worth nearly $20 billion (AUD).
“Dubai dealers have been contacting Australian automotive retailers offering to sell them genuine parts at less than local prices, and our experience has shown that in most cases those parts are, in fact, counterfeit.
“Through our investigations over the last 25 years, we have increasingly seen spare parts for the major car brands being imported into Australia from Dubai, Abu Dhabi and other parts of the UAE.”
FCAI chief executive Tony Weber said the seizure highlighted the issue within the country and urged for consumers to remain vigilant.
“Investigators tell us there is a good chance that thousands of these inferior, illegal and dangerous parts were on their way to being fitted to Australasian cars. ”
Read more at http://www.paintandpanel.com.au/news/news/raid-halts-wave-of-fake-car-parts#ghItBW4qZFkWPekF.99
Ken Black
Rogue parts and rubbish second hand parts are the thorn in the side of any top quality panelbeaters. and I want to make everyone aware it’s not panel shops preference to use this junk it’s insurance companies instructions. Someof them are worse than others, Interesting bit of news in Aussie Panel & Paint mag today though it looks like NZI have come to their senses over there so HOPEFULLY panel shops in NZ will be treated the same soon – yeah right. Here’s the proof straight of the press.
The Federal Chamber of Automotive Industries (FCAI) has called on the wider insurance industry to follow IAG’s lead on using genuine parts.
This is following IAG’s announcement last month (IAG genuine parts announcement) that it had formed a series of partnerships with some leading manufacturers, and their authorised dealers, which allows IAG’s partner smash repairers to exclusively use new genuine parts.
Chief Executive Tony Weber commended IAG on its initiative and said all insurers should commit to road safety and better vehicle repairs by following IAG’s lead.
“This move by IAG sends a strong signal to consumers and to the insurance and motoring industries. Today, we are a step closer to safer roads, safer cars, better repairs and the best in quality parts for Australian drivers,” he said.
“IAG is the first insurer to commit to encouraging smash repairers to use genuine parts, which is a massive step forward for the safety of Australian consumers.”
The policy change comes as engineering tests undertaken by the FCAI’s Genuine is Best initiative ‘continue to show the dangerous inferiority of non-genuine and counterfeit parts’.
“The writing is on the wall for Australian insurers. The evidence shows non-genuine is a risk, and as an industry we applaud IAG for pursuing this change in policy. Every Australian insurer should do the same.
“New genuine parts sourced from an automotive brand’s authorised dealer are the safest, highest quality, most readily available, most efficient and easiest-to-use option for vehicle repairs.”
Weber said the change was a wake-up call to car owners, and a reminder for them to review their insurance policies to ensure that only genuine parts are fitted in repairs.
“The FCAI is calling for car owners to review their product disclosure statements and find out exactly what their insurer’s policy is on genuine parts. If your insurer cares about your safety, genuine parts should be used in every vehicle repair.
“The only way to ensure you are protecting yourself and your loved ones is to ensure genuine parts, acquired through the vehicle maker’s authorised supply chain, are the only parts fitted to your car. Anything else is a risk. Genuine is always best,” Weber said.
Read more at http://www.paintandpanel.com.au/news/news/fcai-call-on-insurance-industry-to-follow-iag#xUUpmVEj1qdCs7XJ.99
Justin
Theres been a big bust in Abu Dhabi recently and this was well covered by PanelTalk this month. This time half a million fake parts were found heading for Aussie & NZ all branded as OEM manufacturer’s product. This isn’t the only mega scam. Theres also been big busts in China as well as the scandel with fake airbags branded Toyota. All typical for those parts of the world and a major problem for honest collision repairers in NZ because these rubbish parts could easily be sold on PartsTrader. We’d never know. But hey we all know that NZI and the other big Aussie insurance companies will walk away from the problem and it’ll be the panel shops liability to sort out. Am I right!