What Makes Spare Parts Any Different from a Purse?

7 juni, 2011

By Dean Bettinger, Volvo Car Corporation

A brand name like VOLVO will be copied or counterfeited if there is money to be made. Volvo Cars is not immune from counterfeiting especially in low cost countries. All counterfeiters acquire a significant competitive advantage by entering markets with car products containing technology, trademarks and/or industrial designs which have already been developed, marketed and paid for by others.
A new car model, for instance, can cost anywhere between three to forty billion Swedish kronor (2003).

- It’s easy and therefore relatively cheap for a counterfeiter to copy an already existing car, a portion of a car (rear- or front-end for example) and/or specific car body parts. Crash parts (or those parts most often damaged in an accident) and service parts are commonly counterfeited.

One can say that VOLVO creates the market & products in which counterfeiter’s unlawfully compete. Whenever a counterfeit part competes with Original or Genuine Parts it reduces the Company’s part & accessory revenue. This income, as you may well know, is vital for ”paying back” initial investments. This also means that an automotive manufacturer like Volvo Cars will have fewer resources to devote to product development in the future. The consequences of this can be fewer employment opportunities because of a ”more competitive” business climate.

Counterfeit parts are difficult to distinguish (visually) with a Genuine product. This is true even for a product expert. The differences usually emerge only after the Purchase in the form of a poor fit, corrosion, or weakness in the material. At the time of Purchase, however, the consumer is led to believe that the copy is either a Genuine product or that it is at least as good as the Original product. Normally, no qualified laboratory tests have been conducted.

- The necessary resources needed to assure quality, safety and the integrated function of a specific spare part in relation to a vehicle’s complete system is missing from a counterfeit.

In the end, the ”Deal” is really no deal when it comes to how well components perform in relation to safety & comfort or in meeting the basic components that instill financial peace of mind. No one likes economic discussions after the fact with insurance companies, pirate spare part stores, or the Volvo factory.

Increasing the Consumer’s awareness on ”World Anti-Counterfeiting Day” is critical in the fight to change people’s behavior and this is the main reason why Volvo Car Corporation supports the initiative undertaken by the Swedish Anti-Counterfeit Group.

 

 

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