In addition to possibly setting a MIL, if a rebuilder doesn't match OE quality, they can run into other problems. For instance, customers reasonably expect their rebuilt engine to perform like new. If the rebuild is going to perform like new, it has to be rebuilt like new.
Then there are premature failure and comebacks. For example, OE and most aftermarket head gaskets are designed to work on a joint face that has been machined to OE levels of smoothness. The replacement head gasket can literally be torn apart if the mating surfaces are rougher than the OE specifications. For some engines, some aftermarket gasket suppliers offer replacement that supposedly can be used on rougher than OE quality surface. Whether these modified gaskets allow the rebuild to reach original performance levels is still a question in my mind. And, in any case, the modified gaskets are only available for certain applications.
Who pays the price?
Perhaps the biggest question facing rebuilder trying to meet OE quality levels is who pays? The Dodge Viper with the V10 engine sells for about $70,000; the Dodge Intrepid with the 2.7L is in the low to mid $20,000 range; and the Dodge/Plymouth Neon with its four-cylinder engine lists for about $12,000. The three cars differ widely in price, but the technology to build their engines is very similar. More importantly, the cost to do major work on those engines won't vary as much as the cost of the cars.
Unfortunately, there aren't enough Viper owners to go around to support all rebuilders. How do we tell John and Mary Average that they have to pay a high cost for major repairs because the engine, from a rebuilder's point of view, is the same as the engine used in a luxury or high performance car?
I wish I had all the answers, but right now, all I have are a lot of tough questions. AR
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