Counterfeit automotive parts pour into US and can be a 'direct risk to safety'

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Every part of your vehicle could be counterfeited.

A counterfeit part could cause performance issues or, worse, even be fatal.

"Counterfeit parts are more than just a failure in quality: They are a direct risk to safety, where shortcuts in integrity can threaten lives," said Bob Stewart, president of the Automotive Anti-Counterfeiting Council, an alliance of nearly a dozen North American vehicle manufacturers.

The group indicated it's not possible to know how many vehicles on the road contain counterfeit parts. But the increasing circulation of these parts is a growing concern among federal officials and automakers.

The U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration issued a safety advisory notice in mid-January to the public, repair professionals and used car buyers and owners about the rise in counterfeit and substandard safety devices, such as airbags and other supplemental restraint system components. It indicated that counterfeit parts may contain unapproved explosive charges and construction material and "can cause serious injury or even death in a crash."

Rapid increase in fake parts seized

Ivan Arvelo, director of the National Intellectual Property Rights Coordination Center, said in a September news release that the "rise in counterfeit automotive parts and equipment continue to be an alarming upward trend."

U.S. Customs and Border Protection seized more than 211,000 counterfeit automotive parts in fiscal 2024, nearly doubling the number of counterfeit parts seized the previous year.

That included more than 490 counterfeit airbags – more than 10 times the number of such devices seized in fiscal 2023, according to the September release from U.S. Immigration and Customs Enforcement. It said Homeland Security had about 40 open investigations into counterfeit automotive parts.

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In fiscal year 2023, the ICE release added, federal authorities seized about 20,000 shipments containing goods that violated intellectual property rights, equating to nearly 23 million counterfeit items – more than $2.75 billion worth had they been genuine parts. Out of those shipments, almost 100,000 items were counterfeit automotive goods with a manufacturer's suggested retail price of more than $10 million.

"We truly believe that the numbers are greater than what they report because they only know what they see," said Stewart, who is the global brand protection manager at General Motors. "This is an illicit trade, so by nature, it's in the black market, so you really don't know what you're up against."

The anti-counterfeiting council's website – which contains a counterfeit parts infographic and video showing tests run on counterfeit and genuine parts – indicates that counterfeit auto parts entering the United States have an estimated value of more than $3 billion a year, according to findings from the U.S. Department of Commerce and the Organisation for Economic Co-operation and Development.

In July, the National Highway Traffic Safety Administration urged used vehicle buyers and owners to be aware of "cheap, substandard replacement airbag inflators that can cause death or serious injury in a crash."

Demand is high for airbags because defective Takata devices are under the largest automotive recall in U.S. history, requiring years of work to replace 67 million of the safety devices.

In the past year, NHTSA said in a news release, three people were killed and two others suffered life-altering, disfiguring injuries because of faulty replacement airbag inflators, which contain an explosive charge to trigger airbag inflation. In all five cases, it indicated, the vehicles had been involved in a crash, and their original equipment airbags were replaced with defective, substandard inflators, in most cases confirmed to have been manufactured overseas.

CARFAX data released the same month indicated that nearly 2 million vehicles were on the road after they were involved in a crash where an airbag deployed during the past two years. Each of those vehicles, according to a news release, "represents an opportunity for a scammer to install a counterfeit airbag as a replacement."

Although instances of counterfeit airbags being installed "are believed to be rare," according to the release, officials with law enforcement and NHTSA said there was no way to know how many counterfeit airbags are being put into vehicles.

Thirty-eight states have counterfeit airbag laws, according to the anti-counterfeiting council.

Counterfeit parts can bring criminal charges

Macomb County man was arraigned in April, accused by the Michigan Attorney General's Office of selling counterfeit restraint systems, including airbags, on his eBay store.

Dinas Kamaitis, 31, of New Baltimore, Michigan, is facing nine felony charges related to counterfeit automotive parts, with a July probable cause conference set in 37th District Court in Warren. His attorney did not return messages seeking comment.

A warrant charged Kamaitis with offering to deliver, display, advertise or possess with intent to deliver counterfeit parts from a half-dozen automakers in crimes Feb. 19-20. The counterfeit items listed in the warrant are: Stellantis grilles, bumpers and logos; Chevrolet and Ford bumpers, and GM, Honda, Subaru and Chevrolet airbags bearing or identified by a counterfeit mark.

More than $600,000 was seized from bank accounts associated with Kamaitis in the first set of charges brought by the AG office's newly expanded Auto Fraud Task Force.

AG spokesman Danny Wimmer in April declined to say how many counterfeit items Kamaitis was suspected of selling, to whom and for how long, where Kamaitis got the items and how much he sold them for.

Tennessee case leads to federal prison sentence

In April, a federal judge in Tennessee sentenced a Memphis man to two years in federal prison for trafficking in counterfeit vehicle airbags, according to a release from the U.S. Attorney's Office there.

Federal prosecutors said that from 2017-21 the retired auto mechanic imported counterfeit vehicle airbag parts from China and assembled them to make counterfeit airbags. He sold the fake airbags on eBay to unsuspecting vehicle repair shops and individual customers for $100-$725 each, they indicated.

Federal authorities intercepted a shipment of counterfeit airbag parts that he ordered, according to the release. They recovered more than 2,000 counterfeit airbag parts and counterfeit airbags at the man's home and business. Federal prosecutors indicated he sold more than 500 counterfeit airbags during the four years and shipped at least one counterfeit airbag by airplane without declaring it as an explosive device or dangerous good so that mandatory federal safety precautions could be taken.

'They'll counterfeit anything'

Stewart said most counterfeit auto parts are coming from Asia, including China, Hong Kong and Taiwan.

“The one thing you have to keep in mind with counterfeits, is the bad actors are opportunistic," he said, "so they will do whatever they can to continue to push their products."

Stewart said the majority of counterfeit auto part purchasing is done online, with a large uptick since the COVID-19 pandemic. In some cases, he said, the counterfeit parts are cheaper than genuine ones, but they could be comparably priced so consumers don't question why they are so inexpensive.

Stewart said the products have been purchased on several large marketplace platforms, and the anti-counterfeiting alliance talks regularly with eBay and Meta, as well as smaller platforms, such as Temu, to advocate enforcing policies against counterfeit parts.

Counterfeit airbags are one of the biggest concerns, safety-wise, but there are other maintenance parts that are counterfeited, including spark plugs, fuel injectors and key fobs.

"They'll counterfeit anything," Stewart said. "Tire pressure sensors, backup sensors, anything. We see it all."

He said many counterfeit parts are sent in small parcels, which are lighter, easier and cheaper to ship.

Stewart says his group has tested about 20 counterfeit airbags "and every one of them has had significant performance issues," such as coming out slow and not being in position by the time they were supposed to be.

He said a lot of genuine spark plugs have iridium on the tips and the point. In the counterfeits, he said, that element missing on one side, instead having a piece of soft metal made to look like iridium. Complaints online, he said, indicate the spark plugs last only 5,000 miles when they should last 100,000 miles.

What can consumers do?

Stewart recommends buying from a reputable place, including directly from dealers or distributors or large chain auto parts retailers. Also, look into the seller and where the seller is located if you are buying online or confirm the reliability of the source of the parts or the repair shop providing them. Request receipts for parts used in repairs.

"Don't be misled," Stewart said, adding that counterfeiters use drop-ship facilities. He said a seller may be in China or elsewhere and ship to U.S. warehouses, which handle distribution. The seller may indicate they are selling from the United States when they are not.

The council advises consulting with the manufacturer's dealer or a trusted mechanic. It indicates that repair shops also should research to ensure they're using reputable supply chains, so they don't get counterfeit parts.

Consumers are advised to get a vehicle history report before buying a used vehicle or if they bought a used vehicle and don't know its history, according to NHTSA. If the vehicle was in a crash where the airbag deployed, they should go to a reputable independent mechanic or dealership for an airbag inspection to make sure the replacement parts are genuine and meet original equipment manufacturer specifications.

If buying from a private seller, NHTSA recommends getting a vehicle history report and having the vehicle inspected by a trusted mechanic.

Consumers can contact law enforcement if they suspect they have a counterfeit auto part. They also can turn to the auto manufacturer, the original equipment manufacturer, the anti-counterfeiting council, NHTSA or the National Intellectual Property Rights Coordination Center.

Contact Christina Hall: chall@freepress.com. Follow her on X, formerly Twitter: @challreporter.

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