Lycoming 0-360 factory overhaul core charges - Does Air Power tell the truth ?

From: "Roy Page"

Now the core has been examined by Lycoming we are being charged an extra
$3,000 core charge because the engine case was stamped with a code number
when last overhauled.
. It was last overhauled by T.W.Smith in 1998

I am dealing with this for a customer and have made posts about it before. I
just talked to a Lycoming Factory rep today in fact.

I think you will find that the number stamped on the case is not from T.W.
Smith but from a case repair facility like Divco. Lycoming's position is that
they have no control over Divco's processes so that they cannot certify the
case as being to original specification therefore Lycoming cannot reuse it.

This has been happening a fair amount and the Rep's excuse for my not getting a
phone call back from anyone is that they are inundated with responses from
people refusing to pay the extra core charge. My customer is refusing to pay
since it was not made clear at the time of sale that a case previously repaired
reworked by an FAA authorized shop and processes would be cause for rejection.

When I asked for the cases back so that we might resell them I was told that a)
they weren't sure they still had them and b) they weren't sure that they could
release parts deemed unairworthy. My response is that if I have to pay $3000
per case I will damned well get something for my money. Today I was told they
will only keep cases for 30 days in any event.

Ball is back in Lycoming's court for now. My usual overhauler says that word
is Lycoming is trying anything they can to generate some cash flow do to the
myriad problems in the last few years from bad crankshafts and other things.
It seems pretty short sighted to me as they must be destroying their rebuilt
and overhauled business.

John Dupre'