EXPERTEC TSB (39-2)

EXPERTEC TSB

TECHNICAL SERVICE BULLETIN

COUNTERFEIT CONTROVERSY - BOGUS PART SUPPLIERS

Model(s): All Oldsmobile Models (Section No. 0)

Bulletin No.: Oldsmobile 39-2

Date: 10/02/1988

SERVICE INFORMATION

The following text was taken from portions of an article printed in the June, 1988 edition of Hot Rod magazine, and such portions are reprinted with Hot Rod's express written permission. This text is being reprinted for your information and guidance.

"From a replacement auto parts standpoint, counterfeiting can be loosely defined as the manufacture and sale of an exact copy or close facsimile of a genuine part with obvious intent to misrepresent its origin. The industry has many names for this mushrooming problem and it appears to be escalating as our nation's economy forces consumers to cut expenses. Call it parts disruption, bootlegging, or piracy, counterfeiting is more prevalent than you could imagine.

The Federal Trade Commission recently went on record to state that approximately $3 billion in fake automotive parts enter or are produced in this country each year - an amount that translates to the loss of 210,000 U.S. jobs. Most manufacturers consider this a conservative figure at best."

("One") reason for apprehending counterfeiters involves the policing of a manufacturer's own trademark. As the law is written, a manufacturer may lose its registered trademark if it doesn't make an effort to defend the trademark against unlicensed use. A prime example of this involved the company Bayer.

It lost the trademark "aspirin" for not policing its interests.

The manufacturers are also concerned about their own product liability. When a customer unknowingly buys a bogus part with a factory logo embossed in it, he expects it to be backed by the factory. And if the part should fail, causing an accident, you can bet he'll be knocking on the automaker's door for a settlement.

Finally, lost profit has a strong bearing on a manufacturer's anticounterfeit aggressiveness. Counterfeiters have historically had the advantage of copying a part, rather than engineering it, which eliminates the costly design work involved. Projecting this trend, the automakers are forced to incorporate their research and development costs into a shorter production run. This ultimately raises the price of new cars.

Practically any replacement part or assembly is susceptible to counterfeiting practices. Hoffor stories told by factory representatives involve both high-and low-end components ranging from complete engines to PCV valves. The most frequently duplicated parts, however, are general maintenance items, including all types of filters, belts, antifreeze, carburetor kits, ignition wire sets, electronic parts, valve train items, miniature bulbs, brake lines, shocks, and wire wheel covers.

To give you an idea of the negative safety implications of bogus parts, we took a look at a recent raid performed by General Motors on a counterfeit operation. The [General Motors] Saudi Arabian sales representatives uncovered bogus brake shoes packaged in look-alike boxes. Upon further examination, the pads were found to be made out of compressed cardboard. Can you imagine trying to stop a 3000 pound car with cardboard brakes?"

"With" such a wide variety of ways to duplicate parts, you might wonder how a manufacturer can uncover the source. Basically, it all filters up from the retail level. Each of the automakers has trained its sales force to spot bogus packaging and illegal use of a factory trademark. Some parts are found at independent parts stores, while others are discovered on the shelves of authorized dealerships. Often too, the retail parts stores may not even be aware that the parts they are selling are bogus. Once, a sales rep secures one of these parts, the ground work is laid for a full investigation.

As of this writing, General Motors has been involved in 51 raids, Ford 40 or more, and Chrysler 15 to 20 in the domestic market along. The end result is the confiscation of all bogus parts and packaging (totaling more than $15 million) along with the paperwork necessary to defend the automaker's case in court.

So what can you do, as a consumer to avoid the great counterfeit rip-off? Keep away from anyone offering parts at unbelievably low prices; avoid cartons similar but not genuine; and always buy from a reputable, credible source." (End of Article)

WE URGE ALL DEALERS TO BE AWARE OF THE LAWS DEALING WITH PRODUCT COUNTERFEITING AND TRADEMARK INFRINGEMENT AND TO TAKE STEPS NECESSARY TO ENSURE THAT THEY ARE NOT INVOLVED IN IMPROPER AND UNLAWFUL ACTIVITY AND THAT COUNTERFEIT PARTS AND ACCESSORIES ARE NOT IN INVENTORY.

Information concerning possible counterfeiting or infringement may be directed to your divisional contact representative(s) or directly to GM Service Parts Operations, Security Department, 6060 West Bristol Road, Flint, MI 48554-2250 or (313) 635-5959.

General Motors and its dealers have a mutual goal of maintaining customer satisfaction and offering the GM vehicle owner genuine, original equipment/parts which meet our high standards of quality, safety, and reliability. We cannot allow this improper conduct of a few to detract from this goal. General Motors needs your continued support and assistance.