Yardbird
Senior Member
Counterfeit automotive parts pour into US and can be a 'direct risk to safety'
Story by Christina Hall, Detroit Free PressEvery part of your vehicle could be counterfeited.
"Counterfeit parts are more than just a failure in quality: They are a direct risk to safety, where shortcuts in integrity can threaten lives," said Bob Stewart, president of the Automotive Anti-Counterfeiting Council, an alliance of nearly a dozen North American vehicle manufacturers.
The group indicated it's not possible to know how many vehicles on the road contain counterfeit parts. But the increasing circulation of these parts is a growing concern among federal officials and automakers.
Rapid growth in fake parts seized
Ivan Arvelo, director of the National Intellectual Property Rights Coordination Center, said in a September news release that the "rise in counterfeit automotive parts and equipment continue to be an alarming upward trend."U.S. Customs and Border Protection seized more than 211,000 counterfeit automotive parts in fiscal 2024, nearly doubling the number of counterfeit parts seized the previous year.
That included more than 490 counterfeit air bags — more than 10 times the number of such devices seized in fiscal 2023, according to the September release from U.S. Immigration and Customs Enforcement. It said Homeland Security had about 40 open investigations into counterfeit automotive parts.
In fiscal year 2023, the ICE release added, federal authorities seized about 20,000 shipments containing goods that violated intellectual property rights, equating to nearly 23 million counterfeit items — more than $2.75 billion worth had they been genuine parts. Out of those shipments, almost 100,000 items were counterfeit automotive goods with a manufacturer's suggested retail price of more than $10 million.
"We truly believe that the numbers are greater than what they report because they only know what they see," said Stewart, who is the global brand protection manager at General Motors. "This is an illicit trade, so by nature, it's in the black market, so you really don't know what you're up against.
In July, the National Highway Traffic Safety Administration urged used vehicle buyers and owners to be aware of "cheap, substandard replacement airbag inflators that can cause death or serious injury in a crash."
Demand is high for air bags because defective Takata devices are under the largest automotive recall in U.S. history, requiring years of work to replace 67 million of the safety devices.
In the last year, NHTSA said in a release, three people were killed and two others suffered life-altering, disfiguring injuries because of faulty replacement air bag inflators, which contain an explosive charge to trigger air bag inflation. In all five cases, it indicated, the vehicles had been involved in a crash, and their original equipment air bags were replaced with defective, substandard inflators, in most cases confirmed to have been manufactured overseas.
CARFAX data released the same month indicated that nearly 2 million vehicles were on the road after they were involved in a crash where an air bag deployed during the last two years. Each of those vehicles, according to a release, "represents an opportunity for a scammer to install a counterfeit airbag as a replacement."
Although instances of counterfeit air bags being installed "are believed to be rare," according to the release, officials with law enforcement and NHTSA said there was no way to know how many counterfeit air bags are being put into vehicles.
Thirty-eight states have counterfeit air bag laws, according to the anti-counterfeiting council.
Counterfeit parts can bring criminal charges
Locally, a Macomb County man was arraigned in April, accused by the Michigan Attorney General's Office of selling counterfeit restraint systems, including air bags, on his eBay store.Dinas Kamaitis, 31, of New Baltimore, is facing nine felony charges related to counterfeit automotive parts, with a July probable cause conference set in 37th District Court in Warren. His attorney did not return messages seeking comment.
A warrant charged Kamaitis with offering to deliver, display, advertise or possess with intent to deliver counterfeit parts from a half-dozen automakers in crimes Feb. 19-20. The counterfeit items listed in the warrant are: Stellantis grilles, bumpers and logos; Chevrolet and Ford bumpers, and GM, Honda, Subaru and Chevrolet air bags bearing or identified by a counterfeit mark.
More than $600,000 was seized from bank accounts associated with Kamaitis in the first set of charges brought by the AG Office's newly expanded Auto Fraud Task Force.
AG spokesman Danny Wimmer in April declined to say how many counterfeit items Kamaitis was suspected of selling, to whom and for how long, where Kamaitis got the items and how much he sold them for.
Tennessee case leads to federal prison sentence
In April, a federal judge in Tennessee sentenced a Memphis man to two years in federal prison for trafficking in counterfeit vehicle air bags, according to a release from the U.S. Attorney's Office there.Federal prosecutors said that from 2017-21 the retired auto mechanic imported counterfeit vehicle air bag parts from China and assembled them to make counterfeit air bags. He sold the fake air bags on eBay to unsuspecting vehicle repair shops and individual customers for $100-$725 each, they indicated.
Federal authorities intercepted a shipment of counterfeit air bag parts that he ordered, according to the release. They recovered more than 2,000 counterfeit air bag parts and counterfeit air bags at the man's home and business. Federal prosecutors indicated he sold more than 500 counterfeit air bags during the four years and shipped at least one counterfeit air bag by airplane without declaring it as an explosive device or dangerous good so that mandatory federal safety precautions could be taken.
'They'll counterfeit anything'
Stewart said most counterfeit auto parts are coming from Asia, including China, Hong Kong and Taiwan.“The one thing you have to keep in mind with counterfeits, is the bad actors are opportunistic," he said, "so they will do whatever they can to continue to push their products."
Stewart said the majority of counterfeit auto part purchasing is done online, with a large uptick since the COVID-19 pandemic. In some cases, he said, the counterfeit parts are cheaper than genuine ones, but they could be comparably priced so consumers don't question why they are so inexpensive.
Stewart said the products have been purchased on several large marketplace platforms, and the anti-counterfeiting alliance talks regularly with eBay and Meta, as well as smaller platforms, such as Temu, to advocate enforcing policies against counterfeit parts.
Counterfeit air bags are one of the biggest concerns, safety-wise, but there are other maintenance parts that are counterfeited, including spark plugs, fuel injectors and key fobs.
"They'll counterfeit anything," Stewart said. "Tire pressure sensors, backup sensors, anything. We see it all."
He said many counterfeit parts are sent in small parcels, which are lighter, easier and cheaper to ship.
Stewart says his group has tested about 20 counterfeit air bags "and every one of them has had significant performance issues," such as coming out slow and not being in position by the time they were supposed to be.
He said a lot of genuine spark plugs have iridium on the tips and the point. In the counterfeits, he said, that element missing on one side, instead having a piece of soft metal made to look like iridium. Complaints online, he said, indicate the spark plugs last only 5,000 miles when they should last 100,000 miles.
What can consumers do?
Stewart recommends buying from a reputable place, including directly from dealers or distributors or large chain auto parts retailers. Also, look into the seller and where the seller is located if you are buying online or confirm the reliability of the source of the parts or the repair shop providing them. Request receipts for parts used in repairs."Don't be misled," Stewart said, adding that counterfeiters use drop-ship facilities. He said a seller may be in China or elsewhere and ship to U.S. warehouses, which handle distribution. The seller may indicate they are selling from the United States when they are not.
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