1. Automotive Parts Theft PRESENTATION TO 2008 IAATI TRAINING SEMINAR Detective Leading Senior Constable Brett FLORENCE Organised Motor Vehicle Theft Squad Victoria Police

2. The Problem In 2007 The National Parts Code of Australia estimated that Illicit or stolen automotive parts cost the community over $300 Million per annum. In 2007 The National Parts Code of Australia estimated that Illicit or stolen automotive parts cost the community over $300 Million per annum. It also stated that Criminals targeted repairers and legitimate recyclers to launder significant volumes of stolen parts. It also stated that Criminals targeted repairers and legitimate recyclers to launder significant volumes of stolen parts.

3. Why?  The Recyclers  The repair industry  Vehicle upgrades  Rare, Collectable and Valuable  Theft for scrap  Theft from Manufacturers

4. Recyclers & Repairers  Both these industries rely on each other to survive  Insurance companies work on tight margins in a highly competitive market  To stay competitive some repairers work on minimal profit margins  Their only option is to purchase parts on the black market

5. Cost of Parts (light front damage) VY Commodore Executive  Bonnet  Bumper  Radiator support  Headlight  2 x Front Guards  Radiator & accessories  Incidentals  Total  $330  $165  $330  $120 each  $145 each  $375  $500  $2230

6. Cost of Parts (light motor cycle damage)  Tank$1000 - $2000  Fairing kit$2000 - $3000  Exhaust Pipe$1000 - $1500  Accessories $2000 - $3000  Frame$2000 - $3000  2 x Front Discs$700

7. This 2004 Holden Avalanche Ute was recovered by Victoria Police Heidelberg West on 6/01/2007. This 2004 Holden Avalanche Ute was recovered by Victoria Police Heidelberg West on 6/01/2007.

8. Mercedes - Benz SLK Vehicle was stolen during a $150,000 burglary in East Melbourne on 29/1/07 where keys were obtained from premises. It was recovered stripped in Reservoir on 5/2/07.

9. Vehicle Upgrades  Another option  The wreck register has made it difficult for criminals to rebirth cars using wreck histories  They take longer to rebirth  They are more labor intensive  Are they as profitable?  Will I get caught?

10. 2003 VY Commodore $9,999

11. 2003 VY SV6 Commodore $23,000

12. The difference  Both vehicles based on the same platform  Both vehicles have the same automatic, V6 Power Plants  The SV6 has alloy wheels, sports suspension, sports steering wheel, sports interior, spoiler kit.  These parts could be transferred from one vehicle to another in a day for $13,000 profit

13. The Hoon Factor

14. He wants a HSV  Just got his licence  He can’t afford the HSV  He can’t get insurance  So he buys a Commodore executive  He steals a HSV and upgrades his executive with; wheels, interior, brakes, spoiler kit  The executive now looks like a HSV  Will he get caught; only if the police check the vehicle for data dots

15. Rare & Collectable Muscle Cars  Rare & Collectable cars have sky rocketed in value and collectors are investing in restored vehicles  Some investors can’t afford a genuine vehicle so they are buying clones  Parts are no longer available  Those parts available are now at exorbitant prices  Restorers of genuine cars don’t want reproduction parts

16. Ford Falcon XW GT HO

17. Restored Steering Wheel Valued at $ 2000 Plastic Dash Panel Surround Valued at $2500 without Instrumentation

18. Air Cleaner Valued at $159 Valve Covers Valued at $300 Radiator Valued at $495

19. Wiper Motor Valued at $450 Alternator Valued at $595 Fuel Tank Valued at $725 Differential Valued at $2700

20. Police investigate theft of race car parts  In September 2007 Police investigated the theft of high performance car racing components from a property in North West Victoria.  The offenders were prepared and knew what they were looking for.  Stolen were a "Littlefield" brand engine supercharger, a "Buzzard" brand injector hat for a supercharger, an "Endele" brand fuel system, a "Merlin" brand engine,  The value of the stolen property is estimated at $40,000.  These parts and engine have no identifying marks as they are purpose built for racing

21. Theft for Scrap  This is a recent article from St Clair in the USA.  Catalytic converters, contain several types of precious metals, including platinum and palladium.  Five years ago, platinum traded for about $608 per troy ounce and palladium for $208. Platinum is now traded at $2,083 per troy ounce, and palladium at about $468 on the New York Mercantile Exchange.  A troy ounce is a metal measurement slightly larger than a common ounce (app. 30 grams).  Scrap yards usually pay $75 to $100 per converter  Converter replacement costs are much higher, ranging from about $200 to $1,000 depending on the vehicle manufacturer.

22. Theft from Manufacturers  Employees stealing on the production line and from spare parts divisions  Key remote $56 from a Holden Dealer on eBay for $25  GTO Badge $32 for export vehicles only & not for sale in Aus on eBay $15

23. Theft from Manufacturers  Genuine Brake Pads $136 per set on eBay $25 on eBay $25  Genuine Fuel Injectors $106 each on eBay $100 per set

24. Why  Taxi and other related industries  Economic times along with rising interest rates and fuel prices  The natural desire to get something cheaper  The aging vehicle fleet

25. Theft from Manufacturers  These are two articles in the Melbourne Herald Sun Newspaper on 29/07/2008.  GM Holden said it lost $6 million after tax in 2007, a significant turnaround after the twin losses of $146 million and $145 million in 2006 and 2005.  The Australian car parts sector must restructure faster and establish new markets over the next two to three years to survive. The industry is facing the challenges of globalization, the high Australian dollar, rising costs and climate change issues.

27. Questions? Brett FLORENCE Victoria Police 0rganised Motor Vehicle Theft Squad 03 9611 8600 brett.florence@police.vic.gov.au