The competition faced by engine builders has never been tougher. There seems to be no end to the new car incentives that the manufacturers can dream up in order to continue the torrid pace of new car sales. This factor, along with consumer perceptions of improved OEM engine quality and performance, several years ago was one of the primary ingredients that led many independent production engine remanufacturers (PERs) to develop extended nationwide warranties for their engines, some now offering limited lifetime coverage.
As a result of these warranties, PERs were better able to compete for a remanufactured engine sale, whether that be sales and distribution through their own branch outlets, or through those of their retail, wholesale or installer customers.
PER nationwide warranties were also a distinct advantage when competing against the automotive machine shop or custom engine rebuilder (CER) that typically offered a more limited warranty on a local basis. However, nationwide engine warranty programs are now available to the CER, too, through a variety of sources.
In the aftermarket, a warranty is primarily a marketing tool used to create consumer, as well as installer, confidence that their rebuilt engine will perform as expected. It also provides insurance that if there is a problem it will be taken care of by the engine builder within the established parameters of the warranty