IMMEDIATE RELEASE

FORD LAUNCHES AIRBAG ANTI-FRAUD EFFORT

DEARBORN, Mich., March 14, 2005 – Ford Motor Company has launched a program to assist auto insurers and the National Insurance Crime Bureau (NICB) in reducing the growing trends of airbag theft and inappropriate repairs to vehicle airbag systems

Airbags have surpassed stereo equipment as the most frequent target of thieves, which has created a black market being tapped by unscrupulous repairers, according to law enforcement authorities. 

Compounding the problem is a growing number of inappropriate repairs in which legitimate airbag modules are not used.  At least two people have died in auto accidents as a result of this practice, according to the Automotive Occupant Restraint Council (AORC).  Carfax.com, the internet vehicle inspection firm, estimates that 1 in every 25 repairs requiring airbag module replacement ends up with installation of a bogus airbag, or no airbag at all.

To address these troubling trends, Ford has created an internet website that includes a database of serial numbers for all replacement airbag modules purchased by Ford and sold to its authorized dealers in the U.S. and Canada since Feb. 1, 2002.  Authorized Ford, Lincoln and Mercury parts wholesaling dealers subsequently sell the replacement modules to collision shops.

Participants in the pilot program obtain from the collision repairer the serial number of the module specified for the repair, access the website to verify the legitimacy of the module, and check off the serial number so that its disposition is noted the database.  Serial numbers for modules installed in new production vehicles will not be in the database, thereby alerting investigators to the potential of stolen modules.  Repairers unable to provide module serial numbers also will come under scrutiny.

“Insurers pay the bill for about 85% of collision repairs and damages resulting from theft,” said Steve Nantau, Collision Repairs Supervisor for Ford Customer Service Division’s Aftermarket Engineering and Remanufacturing Operations.  “They have a vested interest in reducing these problems but, up until now, have had very few tools to help them.  We believe the website will be a valuable resource insurers can access at will to strengthen existing post-repair auditing processes.”

Nantau points to a study conducted completed in 1996 by State Farm, the nation’s largest auto insurer, after which it concluded airbag theft alone cost the auto insurance industry $253 million annually.  The problem has grown since then, as the carfax.com data suggests, and is one factor that drives up the cost of auto insurance, according to Nantau.

Robert M. Bryant, President and CEO for the NICB, believes information contained in the database will be extremely useful to NICB Special Agents and insurance investigators.  The NICB represents the interests of more than 1,000 U.S. auto insurers – who write more than 90% of all auto insurance policies in the U.S. – and serves as the intermediary between the insurers and law enforcement agencies.

“The information in the database will provide those involved in insurance investigations with another resource to validate the adequacy of completed repairs and to better determine the need for potential investigations,” Bryant said.  “We applaud Ford for addressing this growing problem and see this initiative helping to improve the overall quality of collision repair and policyholder satisfaction.”

The program will ultimately serve to protect vehicle owners, who are unlikely to be able to detect problems with airbag systems.  Nantau suggested the following tips for vehicle owners who may have concerns following a collision repair or after purchasing a used vehicle:

When in Doubt, Go to Your Dealer – If you have any doubts, have your vehicle checked by a Ford, Lincoln or Mercury dealer.  Undeployed airbags are extremely dangerous – do not attempt to troubleshoot if you suspect problems. 

Dashboard Light – Most newer vehicles have a dashboard light that illuminates for a few seconds when the vehicle is first started to signal the airbag system is working properly.  If the light stays on, starts flashing or doesn't flash on at all, have the vehicle checked immediately by a Ford, Lincoln or Mercury dealer.

Collision Repair Invoice – After a collision repair, check the repair invoice to make sure the replacement airbag module(s) was purchased from a Ford, Lincoln or Mercury dealer.  Dealers are the exclusive distributors of genuine Ford replacement airbag modules, and Ford recommends that repairs be made only with these modules.

Airbag Cover – Fake airbag covers have been used to hide the fact that a new module has not been installed.  Telltale signs to look for:  Bogus covers rarely have the vehicle's logo imprinted on them; the color of fake covers may vary, even if they fit well.  The color of a genuine cover will match exactly.

(3-14-05)

Technical Information – Stolen/Salvaged Airbag Modules

• Note to Editor: Ford Motor Company airbag system engineers and engineers from suppliers who provide airbag systems for new Ford Motor Company vehicles have identified the following concerns with the use of stolen/salvaged airbag modules

Source of Modules

There is no authorized source other than Ford-Lincoln-Mercury dealers for Ford-approved replacement airbag modules and system components.  The primary sources for alternative airbag modules and system components are theft and retrieval from total loss vehicles.

• Stolen components are removed with little care, and it is highly unlikely thieves are able to provide accurate vehicle application data for the components they have stolen.
• No one can accurately predict the stresses airbag modules and system components have undergone in accidents that” total” vehicles, yet do not deploy the airbags.

Part Application

Vehicle manufacturers make running changes using different airbag system components for the same model vehicle.

• Most alternative airbag components are identified by make and model year only, not by vehicle build date.
• Many airbag system components can fit many versions of the same model, making it possible for incorrect airbag system components to be installed, which could result in improper performance.

Flood Damage

Flood damage frequently causes vehicles to be totaled with airbags intact.  In many instances, water-borne materials (sand, conductive particles, acidic water) soak into airbag assemblies.

• Water may have evaporated and deposited foreign materials it contained; foreign materials may cause short circuits.
• Acidic water can degrade the airbag material over time.

• Currently, there are no tests to determine if these exposures have occurred and that system performance has not been degraded.

Storage

Alternative airbag system components may be improperly stored (temperature, humidity, contaminants, etc.).

• Currently, there are no tests to determine if these exposures have occurred and that system integrity has been maintained.

Handling/Testing

Airbag components are manufactured and installed under controlled conditions, and undergo standardized testing to validate functionality.  The handling/testing of alternative airbag system components varies widely.

• Tests cannot identify if improper handling of components (for example, carrying by wire harnesses) has stressed individual components and degraded performance characteristics.
• Expandable gas is used in certain airbag inflators.  The gas is stored in sealed (welded) containers.  Helium gas is incorporated for leak testing during the airbag assembly process.  Improper handling may cause the gas to leak. The only way to determine if the gas has not leaked is to weigh the container.  This requires disassembly of the entire airbag assembly.

Thermal Plastic Doors

The type and thickness of finish on airbag doors allows the airbag to deploy with precise timing.  Use of alternative airbag components often results in installation of airbag doors that don’t match the vehicle’s interior color scheme.  In some repairs, the airbag doors are re-painted.

• Paint on airbag doors is very technical in nature and misapplication can affect the performance of the doors and possibly result in fragmentation of the doors in a deployment.
• Repairing scratches or marks on airbag doors can weaken the plastic doors and cause improper deployments.

Recalls

Records are maintained by vehicle manufacturers/airbag suppliers to notify vehicle owners in case of product recalls.

• The record trail is often broken when alternative airbags are installed.

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