Having provided Hyundai Motor Co. and Kia Motors Corp. vehicle owners with warranty parts and accessories, Hyundai Mobis saw aftermarket parts sales of more than 2.3 trillion won last year, accounting for 36 percent of its overall sales.

The parts sales division of Hyundai Mobis offers 889,000 parts for more than 143 different car models through domestic and foreign networks, according to Jang Yoon-kyung, director of the company`s public relations.

Hyundai Mobis operates large logistics centers in China (Shanghai), United Arab Emirates (Dubai), Belgium, Germany and the United States (Miami). The company plans to have 18 logistics centers abroad set up by 2007.

Domestically, Mobis runs 11 part stores, 25 part centers and nine logistics centers.

The company also runs a chain of 140 unique car accessories stores called Carfe across the nation.

In 2003, Hyundai Mobis established an online shopping mall at mall.mobis.co.kr to diversify its connections with customers and provide them with detailed information on auto parts and an online consulting service on vehicle maintenance.



Genuine parts



When it comes to car maintenance and parts replacement, Mobis strongly recommends that customers use genuine parts. Genuine parts are the same parts used by the original equipment manufacturers and that have passed strict quality control.

"Non-genuine parts are made with low quality material for a low price. Most products have functional problems which can eventually lead to huge damages," said Yang Seung-chun, Mobis general manager of parts marketing.

Domestic consumer protection law says carmakers must keep and supply genuine parts for at least eight years following the release of each model year.

According to the law on vehicle management, automakers must have a nationwide network to supply genuine parts and provide customers with information on parts and repairs.

U.S. carmakers are also required to offer genuine parts to customers. Japanese automakers have jointly set up an organization to do this across the country.

In Korea, Hyundai Mobis and Daewoo Motor Sales Co. are responsible for providing genuine parts to Hyundai and Kia Motors, and to GM Daewoo Auto & Technology Co., respectively. The nation`s other two carmakers Renault Samsung Motors Co. and Ssangyong Motor Co. also get genuine parts through their own channels.

However, the auto industry believes genuine parts account for only 70 to 80 percent of all auto components sold on the market, which means counterfeit parts are in circulation.

Usage of such non-genuine parts was found to be the major cause of several recent car accidents in the country, according to Yang.

"What could have been a preventable situation or a small accident turns into a disaster due to circulation of non-genuine bumpers, which aren`t good enough to absorb collision impact."

A recent comparative test by Hyundai Mobis Technical Research Institute shows the low quality of a counterfeit bumper that copied the registered design of a genuine parts supplier.

According to the test, the genuine bumper had a compressive strength of 3.3 metric tons whereas the counterfeit broke at 1.5 tons.

As for tensile strength, the genuine bumper could be expanded to 160 percent while the non-genuine broke at 45 percent. Tensile strength is the maximum amount of pulling stress a material can be subjected to before it breaks.

Use of non-genuine wheel bolts also account for a large number of major accidents on highways. Most of the wheel bolts circulated on the market are non-genuine.

According to the Mobis research institute`s test results, counterfeit wheel bolts are 20 percent weaker than the genuine article, and are even more deficient in structure quality.

The same applies to brake pads. The non-genuine brake pads` adhesive strength is 40 percent less than genuine pads, undermining the car`s brake performance.

Such below-standard counterfeit products threaten the safety of passengers. However, it is hard to crackdown on the illegal circulation of such products since they are secretly manufactured in small in-house factories or imported from China and distributed through elusive networks.

They are often packaged in boxes marked with genuine suppliers` trademarks, even with fake quality guarantee stamps forged in China. The fake products are not only sold in Korea but also exported overseas as genuine parts, corroding the safety and international reliability of domestic carmakers.

According to data provided by the auto parts industry, counterfeit products began circulation in China after Hyundai and Kia Motors entered that market in 2002. Lately, those fake products are tagged "Made in Korea" as they go through Korean customs and are exported to the Middle East and Southeast Asia.

In late 2003, a tradesman who tried to bring fake Chinese parts branded Hyundai Mobis from a firm named Hong Kong International to Busan customs and export them to Iran was arrested for violation of trademark and international trade regulations.

About 6,000 counterfeit products - clutch discs, clutch covers and clutch bearings - worth 100 million won if sold as genuine parts were seized by the police at the time.

"The molded parts of fake clutches are easily damaged although they look similar to genuine ones," said an official of Seojin Clutch Corp., a supplier of genuine clutch parts to Hyundai Mobis.

Hyundai Mobis strongly recommends customers make sure to use authorized stores when getting parts replaced or repaired because it is nearly impossible to get compensation for damage caused by counterfeit products.

One way to tell a genuine product from a fake is the quality guarantee certification stamp. The label, which guarantees the safety and performance of a genuine part identical to the one used during initial assembly, involves various methods to prevent imitation.

The Hyundai Mobis hologram sticker label shows the word MOBIS when removed and it cannot be used again once it is detached. Many parts makers put hidden images in the certification seals which can be seen only with special optical instruments or digital readers. Making an inquiry of the numbers printed on the certification label can also tell whether the product is genuine or not.

Checking the packaging is another way to distinguish genuine parts since they come in boxes with specific designs.

Genuine auto parts are sold at direct distribution stores and dealers designated by Hyundai Mobis, Daewoo Motor Sales Co., Renault Samsung and Ssangyong Motor. However, because there is a limit on items that can be purchased by individual consumers, aftersales service centers are also charged with buying the parts.

Thus, consumers should always check the quality guarantee certificates or the packaging even when using designated garages or maintenance partners such as Hyundai`s Green Service, Kia`s Car Clinic Q Service and GM Daewoo`s Baro Baro Service.

If problems occur after buying genuine products, consumers can resolve the issue by visiting the garage or maintenance partners with the receipts.

In the United States, a well-established dealer system of carmakers guarantees everything from sales to maintenance and repairs. For instance, automakers run maintenance shops right next to their showrooms so their registered customers can get broken parts replaced free of charge.

However, recognition of the importance of correct maintenance is still low in Korea, according to experts.

"An average Korean car owner doesn`t emphasize maintenance as much as he enjoys decorating the car`s exterior," says Yang.

Park Yong-hoon of consumer advocacy group Coalition for Transportation Culture emphasized the need to impose stricter regulations on repair shops that operate without permission.

"The government should tighten rules to rein in those who exchange auto parts with inferior or used products," he said.

To protect customers from counterfeits, Hyundai Mobis is planning to set up an intellectual property protection center as early as May with the permission of the Korea Customs Center.

"We decided to set up the center because there is no other way to utilize the information and expertise of companies that hold the rights to trademarks before the counterfeits are circulated in the market," said Yang.

Fake products hurt consumers` rights and safety, and can also snowball into diplomatic disputes between countries.

"Customs inspectors are unable to distinguish all the parts imported and exported because there are so many. So it would be more effective for companies to cooperate with the government by providing their techniques in differentiating the genuine parts," said Yang.

(sophie@heraldm.com)













By Kim So-hyun