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According to the Motor & Equipment Manufacturers Association (MEMA), the counterfeiting of automobile parts is a $12 billion global problem that has resulted in the loss of 750,000 jobs.
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In the U.S. along, the problem is estimated to cost $3 billion. According to the Department of Commerce, the US auto industry could hire over 200,000 more workers if the counterfeit auto parts trade disappeared. Furthermore, the Federal Aviation Authority estimates that 2% of the 26 million airline parts installed each year are counterfeit.
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The Institute of Trading Standards (ITS) says the trade in counterfeit automobile parts in the UK has grown from a £ 300 million industry in 1994 to a £ 3 billion industry today.
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According to the Global Congress on Counterfeiting, 1 in 10 car parts sold in France is fake.
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The International Anti-Counterfeiting Coalition, Inc. (IACC) member auto companies estimate that counterfeit parts make up 20% to 30% of the Indian market, which is valued at roughly $434 million.
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An estimated 30% of car parts in Saudi Arabia are counterfeit.
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China is currently the leading country of origin for the manufacture of counterfeit car parts. GM China estimates that between 30 and 70 % of auto parts sold in China's are counterfeit.
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Examples:
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In 1989 a Convair 580 turbo prop plane carrying 55 people crashed over the North Sea as a result of fake bolts, bushings and brackets.
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Counterfeit components have turned up in US military and NATO aircrafts, Air Force One and even NASA space shuttles.
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In 2004, $1.2 million worth of counterfeit German brake pads and shock absorbers were seized in Lebanon, according to Interpol Secretary General Ronald Noble. Profits from the sale of these parts was intended for supporters of Hezbollah.
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Automotive News, November 24, 2003. |
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Stop Counterfeiting of Car and Truck Parts , Motor Equipment Manufacturers Association (MEMA). |
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UK fake car parts danger , BBC News, June 24, 1999. |
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Why imitation is not always flattering , BBC News, June 25, 2004. |
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Counterfeiting and Theft of Tangible Intellectual Property: Challenges and Solutions , t estimony of Timothy Trainer, President, International Anti-Counterfeiting Coalition, Inc. (IACC), March 23, 2004. |
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Stat-USA, Market Research Report , March 8, 2006.
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Redefining Intellectual Property Value: the Case in China , PriceWaterhouseCoopers, 2005. |
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Ibid. |
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Interpol Media Release , April 6, 2004. |
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