'Substitute and return scam' hits airbags

News

Insurers and car makers have been acting fast to try and stem the theft and resale of airbags. Already a major problem in the US, airbag theft could hit Australia in a big way said NRMA Insurance industry research manager Robert McDonald was quoted as saying in the Sydney Morning Herald recently.
According to his research, McDonald said dishonest bodyshops quote for replacement airbags, order them from the dealer, then return them after they have been invoiced and delivered. The repairer then fits a stolen airbag and pockets the difference. This is an extension of the scam used by unscrupulous shops to get paid for new genuine parts and then return them and replace them with stolen, non-genuine or used parts.
Thieves in the US (where the use of airbags is more prevalent) are not only breaking into cars to steal airbags but have targeted dealerships themselves, such is the money making potential.
Car makers and insurers are hitting back according to McDonald, who said air bag security is being stepped up to make it harder to steal the items. The new Saab 9-3 for instance, has an anti-theft system which originated in Australia, as has VW, which hides the securing screws when the steering is locked.
Further measures are being considered including encouraging dealers to refuse returns for common 'substitute and return scam' parts such as airbags, bumper bars, grilles, mirrors and headlights.

AATF: mixed response
The 26th Australian Automotive Trade Fair (AATF) received a mixed response from exhibitors and visitors alike (for a round-up of the products on show, see p.34).
Key exhibitor complaints included the fact that there was no official registration process -- visitors were given a sticker and let in the show without any need to provide personal or company details which makes follow-up marketing difficult.
Nevertheless, the quality of the visitors (if not the quantity) was said to be high. Sales director for exhibitor GNG Sales, Garry Benson, for example said; "judging by the amount of people who asked for brochures, there weren't a lot of 'tyre-kickers' at the show".
Other complaints centred on the location, which at Homebush Bay was generally not thought to be as good a venue, especially for corporate entertainment facilities, as the previous venue at Darling Harbour. It is not popular with regional and interstate visitors either. Said one bodyshop owner from Adelaide who didn't attend the fair this year: "The show should be a social occasion as well as business -- nobody wants to be stuck out in Homebush -- the food's terrible, the trains don't go direct from the city and compared to Darling Harbour it's a nightmare." This situation should be remedied next year as the fair is slated to take place at the Melbourne Exhibition Centre in the heart of Melbourne.
Doubts over the future direction of the show surfaced recently with rumours that the show had been sold, however Trade Fairs & Events Australia managing director Neil Thomas said there was no truth to the speculation although he did admit to the possibility of it being sold in the future. The fact that the new AAAA Trade Show (see p. 22 for details) has been set up in direct competition to the AATF means potential exhibitors and visitors will now have to make a choice as to which show they attend -- there is surely not room in the market for two.
One of the key points some exhibitors have made about the AATF is that it should only take place every other year, not every year, as it is too much of a financial burden for exhibitors and product turnover in the collision repair market means new products appear less frequently than the show demands. As one paint company executive put it; "If the world's biggest automotive show -- Automechanika -- only happens every other year, why does the AATF have to be every year?".
Despite dissatisfaction from some at the show, there was much to see at the event and trade fairs are still an important part of the calendar. Two shows in Melbourne next year within three months of each other is perhaps too much to support however.