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Ford loses $1 billion a year on counterfeit auto parts

DETROIT (Reuters) -- Ford Motor Co. is losing about $1 billion annually from counterfeit auto parts, according to a study by the U.S. Chamber of Commerce.

The figure was disclosed by Joe Wiegand, Ford's global brand protection manager, in the study that will be released on Wednesday.

Counterfeiting has health and safety ramifications and few means of effective remediation as, for example, legal actions are largely toothless outside the United States and Mexico, the study said.

"Many businesses, particularly small and medium-sized companies, do not fully appreciate the bottom-line cost of lax supply chain security and adverse impact it has on brand value," the study said.

Fake products costs companies like Ford by depriving then of revenue from genuine parts.

Consumers are also hurt because they are deceived into buying fake products that can pose health and safety hazards, according to the study, which also looked at counterfeiting problems for auto parts supplier Bendix, office equipment maker Xerox Corp., drug company Merck & Co. Inc., and athletic shoe maker New Balance.

Tags: Ford Suppliers

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