New tactic in campaign against fake spare parts

In a break from its earlier campaigns, Al Futtaim Motors (AFM) will target the "bigger" distributors of fake spare parts, according to a top official.

Surveillance is being maintained on such distributors, and once sufficient proof is available, the details will be forwarded to the authorities for action, the official added.

"We know such actions will hurt them, and might even prompt some of them to resist dealing in the fake business. It is a constant war," said Calvyn Hamman, general manager for parts at AFM.
Last year the company, along with local authorities, conducted a major raid on such a distributor based in Sharjah.

That raid netted over Dh500,000 - based on street prices - worth of fake parts.

"With this, we are sending a strong message to other distributors in the UAE who are involved in this counterfeit business," said Hamman.

"The Sharjah distributor that was raided had a warehouse which was as big as those operated by the official dealerships here. In many a case, the actual end user is not even aware that the parts he is using are outright fakes and could lead to dangerous consequences.

"On the plus side, there are many more parts dealers here who have conveyed their wishes to help us in our efforts to stem the inflow of fakes. This is a welcome development."

Local authorities too are cracking the whip on the fraudsters.

According to Ali Ibrahim, director for commercial registration at Dubai Department of Economic Development, "We fully understand and appreciate the concerns of the private sector regarding the proliferation of fraudulent and counterfeit goods and the long-term ill effects resulting from this development.

"We are working closely with the private sector to counter such practices."

The DED official added: "We encourage significant initiatives from the private sector that will throw light on such malpractices and will enable us to deal appropriately with them. We welcome information with regard to companies in the auto sector dealing in such practices and we look forward to receiving the report very soon."

Along with parallel imports, the easy availability of fake spare parts in the local markets cost the official trade here tens of millions of dollars in lost business.

Among the various automobile makes, Toyota's spare parts are among the most widely copied and sold in the GCC markets.

Meanwhile, Toyota Motor Corp. (TMC) is ramping up its campaign against the manufacturers of these fakes, mostly based in the Far East, to cut off supplies at source. In 2002, millions of dollars worth of fakes were seized by Toyota through such methods.

"With its resources, TMC is better placed to go after the many sources, and this will choke off supplies to our markets. Last year, TMC conducted well over 100 major raids, which was a 95 per cent increase on the tally in 2001," said Hamman.