Counterfeit parts might save you cash today,but they could cost you tomorrow

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Economic realities are forcing fleet managers to look at cost-saving alternatives in their operations that a few years ago simply weren’t worth the trouble for many. As profits narrow or disappear and maintenance costs rise due to older equipment, parts undoubtedly receive more attention.

While fleets reasonably might look at quality “will-fit” aftermarket parts as an alternative, some might be tempted to look the other way or not ask questions if they can save a few bucks on parts that are actual counterfeits – parts that don’t have a clear manufacturer standing behind them and instead are passed off as being name-brand items. But those fleets may be taking a shortcut to downtime, lost revenue, ruined warranties and – in a worst-case scenario – opening up the possibility of injuries or fatal highway accidents.

To be sure, large corporations keenly are interested in protecting their brand trademarks from knockoff producers. There is much at stake: According to the Federal Trade Commission, the proliferation of counterfeit parts is a $12 billion-a-year worldwide problem in the automotive industry, last year accounting for sales of $3 billion in the United States alone.

For corporations that have spent years – if not decades – building their brand reputations, counterfeiters threaten more than just their bank accounts: counterfeit automotive parts can erode global goodwill and lead to millions of dollars spent in the courts on false warranty claims and lawsuits or trying to shut down counterfeit part manufacturers.

From the fleet end of things, paying a drastically reduced price for a part most likely won’t pan out. The higher prices built into the cost of legitimate automotive parts includes many services that counterfeit part producers never would dream of providing, including warranty protection and technical support and education.

“I absolutely believe that counterfeit products cost fleets more in the long run, with increased repairs, lost warranty and costs associated with safety,” says Gloria Pliler, director of parts procurement for Phoenix-based Swift Transportation. “It would be unconscionable to save a dollar on an inferior part that resulted in an injury either to the technician who installed the part or to the motoring public.” In addition, the counterfeit organization is, in effect, stealing from the original manufacturer, which most likely will have to increase prices for original parts as a result, Pliler says.

Ground zero for fakes
Brett Heavner, an attorney and partner at intellectual property law firm Finnegan, says old stories that somewhat legitimize counterfeit parts or downplay their darker side have been exposed as just that – stories that help to assuage the consciences of people who feed the demand for counterfeit products around the world.