Fighting back against fake parts
By Richard Brown2020-01-28T11:46:00
Counterfeit parts in the automotive industry will soon be worth more than the annual gross domestic product of Canada, Brazil or Italy. According to World Trademark Review, the estimated global economic cost of counterfeiting in the automotive industry could reach $2.3 trillion by 2022. In Europe, it is estimated that €2.2 billion ($2.4 billion) is lost annually to counterfeit tyre sales alone, while counterfeit battery sales effectively steal €180m ($198m) from OEMs. Furthermore, the rise of e-commerce is making it ever easier for consumers to knowingly or unknowingly access counterfeit, possibly dangerous vehicle parts.
Measures have been implemented both at the government level and by the industry in a bid to tackle fake automotive parts. In the US, manufacturers represented by the Automotive Anti-Counterfeiting Council (A2C2) are actively lobbying for change and have succeeded in enacting legislation in several states. Meanwhile, the UK government recently joined forces with the automotive industry and trading platforms to launch a consumer-awareness campaign on the dangers of fake automotive parts. Technology, including digital systems such as the Cloud, can also offer a potential solution.