Truck Topics

Buyer Beware: Counterfeit Truck Parts

Time was, the term "counterfeit" used to elicit an image of $100 bills rolling off a criminal's printing press insome back alley. Or, it brings to mind the street hustler selling "Rollex" watches for 10 bucks.

Well, the counterfeiting business has expanded. Today, 5% to 8% of all goods sold worldwide are counterfeit, or what the FBI has labeled the ìCrime of the 21st Century." Counterfeit products include videos, prescription drugs, designer name goods, music compact discs and a host of other products.

Legally, counterfeiting is "trafficking in goods featuring a mark substantially the same as someone else's in a manner likely to cause confusion."

Counterfeiting has reached into the automotive and heavy-duty duty truck parts market and is estimated to generate $3 billion in the United States alone, according to the Heavy Duty Manufacturers Association (HDMA).

Presently, heavy-duty truck parts make up only a small fraction of counterfeit products overall, but the manufacturers of phony brake pads, batteries, fan belts, valves and a range of other truck parts are broadening their product lines and areas of distribution, including the U.S.

Some parts, while they don't fit the strict definition of counterfeit, are designed to fool the purchaser into believing they are the genuine article. Called clones or knock-offs these parts are reverse-engineered to look like the originals, to the point of even carrying the same part numbers.

The problem with knock-offs is that theyíre usually made offshore, in substandard facilities, with little or no control over suppliers or product quality.

Heavy-duty part manufacturers such as ArvinMeritor, Bendix, Webb Wheel, Grote Industries, Cummins, Haldex, Phillips Industries and others have been the targets of counterfeiters and are working to fight the phony versions of their products.

The experts say that we've only seen the beginning of fake parts in the heavy-duty market. Factors that include global computer technologies, counterfeit profitability and global manufacturing make this business attractive to organized crime.

The legitimate parts manufacturerers say that the counterfeit copies are quite often good enough to pass a cursory inspection because they resemble the real thing so closely. That is, until that part fails and the customer tries to have it replaced under warranty.

It's then that the surprised customer discovers that he is about to pay twice for the same part - once for the initial purchase and again for it's replacenent.

Because counterfeit parts are likely to fail early, these failures can lead to system failures which can lead to accidents.

Case in point
For example, Bendix examined one counterfeit valve and discovered the counterfeit valve's wall was 56% thinner, making it more susceptible to cracking or even rupture.

Inconsistent spring tension on the counterfeit valve was likely to result in brake imbalance and longer stopping distances. In addition, O-rings, bolts and pistons used in the counterfeit valve were built with inferior materials that are prone to accelerated wear and leakage.

Not only can the valve fail, but a bogus valve can cause problems in the rest of the air system. A valve that's not performing to the right specifications can increase friction wear, overheat drums, crack seals and more.

According to one manufacturer's testing, a counterfeit product may deliver a service life of only one-third or one-half as long as the genuine part ó assuming thereís not a catastrophic failure first.

Of course, this translates into a serious safety issue, not to mention the cost of downtime when replacing the defective phony part. There is also the possibility of litigation if a defective part causes an accident and it can be shown that the customer knowingly used substandard counterfeit parts.

A crime
It's important to remember that counterfeiting is not a victimless crime.

*Counterfeiting steals good manufacturing jobs.

*Counterfeit products pose safety risks to unsuspecting consumers.

*Counterfeiting destroys the brand reputation of legitimate companies, hurting them at home and in foreign markets.

*Counterfeit automotive and trucking products threaten Americaís innovation, economy, and the competitiveness of manufacturers.

Protect yourself
There are a few simple techniqes you can use to discover if you've unwittingly purchased bogus parts:

*Inspect the packaging.
Flimsy, poorly-constructed packaging that lacks the name brand or logo along with incorrect color schemes are quite often a tipoff that you've got a fake part.

*Price
If you're being offered a product that appears to be a name brand part at a substantially lower price than you've paid before, it's probably a case of "too good to be true."

However, say the experts, some counterfeiters are playing games with buying pyschology and charging slightly higher prices for their phony parts as to not arouse suspicion.

*Where the product comes from
Does it say "Made in China" or "Made in Taiwan" on the box or packaging? A quick look at the manufacturer's website can tell you if they actually manufacture in that country.

*Be careful at trade shows, a clearinghouse for counterfeit parts.
Not every importer makes counterfeit or non-compliant products, but be sure you know that you're buying from a respected name and brand with some history.

*Examine parts before installation
Are the part numbers and RMA codes on the part accurate?
Is the manufacturer's name on the product?
Ask the service technician to see the replacement part and package.

Legislative protection
The parts industry has mobilized in recent years to fight counterfeiting, as companies try to protect their brand names, goodwill and profits and keep unsafe parts out of the marketplace.

The Motor & Equipment Manufacturers Association (MEMA) has set up a Brand Protection Council to help address and set the association's priorities in the areas of counterfeiting, diversion, noncompliant products and intellectual property rights.

In 2006, President Bush signed The Stop Counterfeiting In Manufactured Goods Act. This legislation helps protect the rights of America's consumers, workers, and entrepreneurs by strengthening the laws against counterfeit labels and packaging; by strengthening penalties for counterfeiters; and by giving prosecutors new tools to stop those who defraud American consumers.

While it was already illegal to manufacture, ship, or sell counterfeit products, this legislation closes a loophole allowing the shipment of falsified labels or packaging, which counterfeiters could then attach to fake products in order to cheat consumers by passing off poorly made items as brand-name goods.

This bill requires courts to order the destruction of all counterfeit products seized as part of a criminal investigation and requires convicted counterfeiters to turn over their profits and any equipment used in their operations. This bill requires those convicted of counterfeiting to reimburse the legitimate businesses they exploited.