-11-
block engine customer core, which was a short-block customer core
with the heads, that core underwent some initial disassembly by
Consolidated's employees in order to convert it into a short-
block engine customer core (i.e., the cylinder heads, related
valve train assembly, and the oil pump were removed), at which
point it was marked and wheeled into the core yard. Short-block
engine customer cores that were not sufficiently stripped down so
as to permit detection of irreparable latent defects remained in
the core yard until they were brought into production, at which
time they were further disassembled, inspected for defects, and
reconditioned into salable condition. During the disassembly and
cleaning process, engine customer cores and engine core supplier
cores were subjected to numerous visual and mechanical
examinations and procedures. Only if an engine core passed all
of those examinations and procedures could it become a remanu-
factured automobile engine.
During the disassembly process, the cylinder heads, the
crankshaft, the camshaft, and rods were removed from the engine
core, retained by Consolidated, and subjected to separate
remanufacturing processes. These parts were, if in usable
condition, remanufactured in separate areas of Consolidated's
remanufacturing facility. Those remanufactured automobile parts
were then incorporated into remanufactured engines and, in the
case of crankshafts, heads, and rods, were sold as separate
remanufactured automobile parts.
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Last modified: May 25, 2011