Automotive Parts TheftAutomotive Parts TheftPRESENTATION TOPRESENTATION TO

2008 2008 IAATI TRAINING SEMINAR IAATI TRAINING SEMINAR

Detective Leading Senior Constable Brett FLORENCEDetective Leading Senior Constable Brett FLORENCEOrganised Motor Vehicle Theft SquadOrganised Motor Vehicle Theft Squad

Victoria PoliceVictoria Police

The ProblemThe Problem

In 2007 The National Parts Code of In 2007 The National Parts Code of Australia estimated that Illicit or stolen Australia estimated that Illicit or stolen automotive parts cost the community over automotive parts cost the community over $300 Million per annum.$300 Million per annum.

It also stated that Criminals targeted It also stated that Criminals targeted repairers and legitimate recyclers to repairers and legitimate recyclers to launder significant volumes of stolen parts.launder significant volumes of stolen parts.

Why?Why?

The RecyclersThe Recyclers The repair industryThe repair industry Vehicle upgradesVehicle upgrades Rare, Collectable and Valuable Rare, Collectable and Valuable Theft for scrapTheft for scrap Theft from ManufacturersTheft from Manufacturers

Recyclers & RepairersRecyclers & Repairers

Both these industries rely on each other to Both these industries rely on each other to survivesurvive

Insurance companies work on tight Insurance companies work on tight margins in a highly competitive marketmargins in a highly competitive market

To stay competitive some repairers work To stay competitive some repairers work on minimal profit marginson minimal profit margins

Their only option is to purchase parts on Their only option is to purchase parts on the black marketthe black market

Cost of Parts (light front damage)Cost of Parts (light front damage)VY Commodore ExecutiveVY Commodore Executive

BonnetBonnet BumperBumper Radiator supportRadiator support HeadlightHeadlight 2 x Front Guards2 x Front Guards Radiator & Radiator &

accessoriesaccessories IncidentalsIncidentals TotalTotal

$330$330 $165$165 $330$330 $120 each$120 each $145 each$145 each $375$375

$500$500 $2230$2230

Cost of Parts (light motor cycle Cost of Parts (light motor cycle damage)damage)

TankTank $1000 - $2000$1000 - $2000 Fairing kitFairing kit $2000 - $3000$2000 - $3000 Exhaust PipeExhaust Pipe $1000 - $1500$1000 - $1500 Accessories Accessories $2000 - $3000$2000 - $3000 FrameFrame $2000 - $3000$2000 - $3000 2 x Front Discs2 x Front Discs $700$700

This 2004 Holden Avalanche Ute was recovered This 2004 Holden Avalanche Ute was recovered

by Victoria Police Heidelberg West on 6/01/2007.by Victoria Police Heidelberg West on 6/01/2007.

Mercedes - Benz  SLK Mercedes - Benz  SLK Vehicle was stolen during a $150,000 burglary in Vehicle was stolen during a $150,000 burglary in

East Melbourne on 29/1/07 where keys were East Melbourne on 29/1/07 where keys were obtained from premises. It was recovered stripped obtained from premises. It was recovered stripped

in Reservoir on 5/2/07.in Reservoir on 5/2/07.

Vehicle UpgradesVehicle Upgrades

Another optionAnother option The wreck register has made it difficult for The wreck register has made it difficult for

criminals to rebirth cars using wreck criminals to rebirth cars using wreck historieshistories

They take longer to rebirthThey take longer to rebirth They are more labor intensiveThey are more labor intensive Are they as profitable?Are they as profitable? Will I get caught?Will I get caught?

2003 VY Commodore $9,9992003 VY Commodore $9,999

2003 VY SV6 Commodore $23,0002003 VY SV6 Commodore $23,000

The differenceThe difference

Both vehicles based on the same platformBoth vehicles based on the same platform Both vehicles have the same automatic, Both vehicles have the same automatic,

V6 Power PlantsV6 Power Plants The SV6 has alloy wheels, sports The SV6 has alloy wheels, sports

suspension, sports steering wheel, sports suspension, sports steering wheel, sports interior, spoiler kit. interior, spoiler kit.

These parts could be transferred from one These parts could be transferred from one vehicle to another in a day for $13,000 vehicle to another in a day for $13,000 profitprofit

The Hoon FactorThe Hoon Factor

He wants a HSVHe wants a HSV

Just got his licence Just got his licence He can’t afford the HSVHe can’t afford the HSV He can’t get insuranceHe can’t get insurance So he buys a Commodore executiveSo he buys a Commodore executive He steals a HSV and upgrades his executive He steals a HSV and upgrades his executive

with; wheels, interior, brakes, spoiler kitwith; wheels, interior, brakes, spoiler kit The executive now looks like a HSVThe executive now looks like a HSV Will he get caught; only if the police check the Will he get caught; only if the police check the

vehicle for data dots vehicle for data dots

Rare & Collectable Muscle CarsRare & Collectable Muscle Cars

Rare & Collectable cars have sky rocketed in Rare & Collectable cars have sky rocketed in value and collectors are investing in restored value and collectors are investing in restored vehiclesvehicles

Some investors can’t afford a genuine vehicle so Some investors can’t afford a genuine vehicle so they are buying clones they are buying clones

Parts are no longer availableParts are no longer available Those parts available are now at exorbitant Those parts available are now at exorbitant

pricesprices Restorers of genuine cars don’t want Restorers of genuine cars don’t want

reproduction partsreproduction parts

Ford Falcon XW GT HOFord Falcon XW GT HO

Restored Steering Wheel Valued at $ 2000Restored Steering Wheel Valued at $ 2000

Plastic Dash Panel Surround Valued at $2500 without Instrumentation

Air Cleaner Valued at $159Air Cleaner Valued at $159Valve Covers Valued at $300Valve Covers Valued at $300

Radiator Valued at $495Radiator Valued at $495

WiperWiper Motor Valued at $450 Motor Valued at $450Alternator Valued at $595Alternator Valued at $595Fuel Tank Valued at $725Fuel Tank Valued at $725

Differential Valued at $2700Differential Valued at $2700

Police investigate theft of race Police investigate theft of race car partscar parts

In September 2007 Police investigated the theft of high In September 2007 Police investigated the theft of high

performance car racing components from a property in performance car racing components from a property in North West Victoria.North West Victoria.

The offenders were prepared and knew what they were The offenders were prepared and knew what they were looking for.looking for.

Stolen were a "Littlefield" brand engine supercharger, a Stolen were a "Littlefield" brand engine supercharger, a "Buzzard" brand injector hat for a supercharger, an "Buzzard" brand injector hat for a supercharger, an "Endele" brand fuel system, a "Merlin" brand engine, "Endele" brand fuel system, a "Merlin" brand engine,

The value of the stolen property is estimated at $40,000.The value of the stolen property is estimated at $40,000. These parts and engine have no identifying marks as These parts and engine have no identifying marks as

they are purpose built for racing they are purpose built for racing

Theft for ScrapTheft for Scrap This is a recent article from St Clair in the USA. This is a recent article from St Clair in the USA. Catalytic converters, contain several types of precious Catalytic converters, contain several types of precious

metals, including platinum and palladium.metals, including platinum and palladium. Five years ago, platinum traded for about $608 per troy Five years ago, platinum traded for about $608 per troy

ounce and palladium for $208. Platinum is now traded at ounce and palladium for $208. Platinum is now traded at $2,083 per troy ounce, and palladium at about $468 on $2,083 per troy ounce, and palladium at about $468 on the New York Mercantile Exchange. the New York Mercantile Exchange.

A troy ounce is a metal measurement slightly larger than A troy ounce is a metal measurement slightly larger than a common ounce (app. 30 grams).a common ounce (app. 30 grams).

Scrap yards usually pay $75 to $100 per converterScrap yards usually pay $75 to $100 per converter Converter replacement costs are much higher, ranging Converter replacement costs are much higher, ranging

from about $200 to $1,000 depending on the vehicle from about $200 to $1,000 depending on the vehicle manufacturer.manufacturer.

Theft from ManufacturersTheft from Manufacturers Employees stealing Employees stealing

on the production line on the production line and from spare parts and from spare parts divisionsdivisions

Key remote $56 from Key remote $56 from a Holden Dealer on a Holden Dealer on eBay for $25eBay for $25

GTO Badge $32 for GTO Badge $32 for export vehicles only & export vehicles only & not for sale in Aus on not for sale in Aus on eBay $15eBay $15

Theft from ManufacturersTheft from Manufacturers

Genuine Brake Pads Genuine Brake Pads $136 per set $136 per set

on eBay $25 on eBay $25

Genuine Fuel Genuine Fuel Injectors $106 each Injectors $106 each on eBay $100 per seton eBay $100 per set

WhyWhy

Taxi and other related industriesTaxi and other related industries Economic times along with rising interest Economic times along with rising interest

rates and fuel pricesrates and fuel prices The natural desire to get something The natural desire to get something

cheapercheaper The aging vehicle fleetThe aging vehicle fleet

Theft from ManufacturersTheft from Manufacturers These are two articles in the Melbourne Herald These are two articles in the Melbourne Herald

Sun Newspaper on 29/07/2008.Sun Newspaper on 29/07/2008. GM Holden said it lost $6 million after tax in GM Holden said it lost $6 million after tax in

2007, a significant turnaround after the twin 2007, a significant turnaround after the twin losses of $146 million and $145 million in 2006 losses of $146 million and $145 million in 2006 and 2005. and 2005.

The Australian car parts sector must restructure The Australian car parts sector must restructure faster and establish new markets over the next faster and establish new markets over the next two to three years to survive.two to three years to survive. The industry is The industry is facing the challenges of globalization, the high facing the challenges of globalization, the high Australian dollar, rising costs and climate Australian dollar, rising costs and climate change issues.change issues.

Questions?Questions?

Brett FLORENCEBrett FLORENCE

Victoria Police 0rganised Motor Vehicle Victoria Police 0rganised Motor Vehicle Theft Squad 03 9611 8600Theft Squad 03 9611 8600

brett.florence@police.vic.gov.aubrett.florence@police.vic.gov.au