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THE danger posed by using fake parts in vehicle repairs can be blamed on the insurance industry, which promotes the use of cheaper, non-genuine parts, according to the Federal Chamber of Automotive Industries (FCAI).

FCAI chief executive Tony Weber said consumers were being deceived by the use of non-genuine parts by repairers and should be aware of the problem well before they need a repair shop.

“People need to be cognisant that what they are signing up to in their insurance policy actually dictates the way in which their car is repaired,” he said at a media event last week.

Mr Weber said consumers should be pressuring insurance companies to guarantee that only original parts are used when the consumer’s car is repaired.

He was speaking after revealing that testing of fake Holden VF Commodore bonnets showed that the replicas were made of the wrong metals, which could lead to a catastrophic failure while the vehicle was being driven.

Testing times: The fake parts tested on a VF Holden Commodore suffered “catastrophic failures or sustained wear,” according to the FCAI.

“What we have demonstrated is that the deception is endemic in the marketplace. Car owners think they are getting a bargain. But they are actually stepping into the danger zone.”

He said insurance companies should be stating clearly in their product disclosure statements (PDSs) what their policy is on the use of fake or genuine parts.

“Consumers should be looking at the PDS and demanding that the insurance company requires the use of genuine parts in the repair.

“Some companies do provide genuine parts in the repair and so there is a differential in the marketplace between what is actually offered.”

The repair industry is closely controlled by the insurers and is under pressure to keep costs down, Mr Weber said.

“The pressure is coming from insurance companies.

“The message here is people need to understand the benefit of using genuine parts. They need to think about the product disclosure statement in their policy and we need to educate the people about the dangers because, I think, a large proportion of the population never consider this issue.

“They have their car repaired and don’t understand the dangers they are potentially putting themselves in front of.”

The fake Commodore bonnets used in the durability tests are believed to have cost around $350 whereas the genuine all-aluminium VF Commodore bonnet lists at around $700.

“Quite often the part might be made to different specifications, with different metals to reduce the price,” Mr Weber told GoAuto.

“All this is driven by price and the danger to the consumer is, in cutting costs, you get a sub-optimal product.”

Mr Weber said the replacement of what looks like a simple component with a fake can have unforeseen safety consequences.

“It could be a heavier product, a lighter product, whatever it is. With a modern car, you are talking about an integrated safety unit where the strength and weight of the bonnet can be instrumental in the way other safety parts of the car reacts, including the airbags.

“Hence you have a real danger to consumers.”

Mr Weber was asked whether insurance companies were under an obligation to repair cars so that they met manufacturers’ specifications after they were repaired.

“What we are saying to people is you should be cognisant of this issue well and truly before you have an accident. You should be thinking about this at the time you take out your insurance policy so there is clarity in your mind and the insurer’s mind that, when the time comes to make a claim, that you gain access to genuine parts. It’s a very tricky area.”

Mr Weber said the fake Commodore bonnets tested by GM Holden engineers were supplied by a company that certifies itself. It makes some parts itself, sources some from other suppliers and is contracted to major Australian insurance companies. It distributes the fake parts to collision repairers.

These non-accredited suppliers merely examine parts for “fit, form and finish” but not whether the parts are fit for purpose, Mr Weber said.

Fit for purpose means a part can take wear and tear in the course of normal use and still perform to specification and support the designed safety standards.

When the fake aluminium and steel Commodore bonnets were tested for durability by Holden engineering group manager Rowan Lal and his team, they suffered catastrophic failures or sustained wear that would have resulted in catastrophic failure.

By Ian Porter

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