Griffo, if it's anything like the Caterpillar/Perkins engine manufacturing fiasco in China, look out.
In 1997, Caterpillar, as owner of Perkins Engines, saw great potential in manufacturing Perkins diesel engines in China. Perkins engines have previously been manufactured in 27 countries (including Australia) with no problems.
Some of those countries manufactured large amounts of the Perkins engine parts, and used some British Perkins engine factory parts.
Some countries only manufactured small amounts of the Perkins engine parts, and assembled engines with a majority of British Perkins factory parts.
When Caterpillar moved into Perkins Engine production in China, they went into Joint Venture (JV) with a Chinese company known as known as Tianjin Engine Works.
This JV produced Perkins 1000 series and Phaser 4 & 6 cylinder diesel engines, and was named Perkins Engines (Tianjin) Limited (PETL).
However, by 2001, problems were becoming apparent in the Chinese Perkins JV - both in the manufacturing side, and in the paperwork. An investigation by Caterpillar executives found some disturbing company irregularities.
The Chinese directors of the JV had transferred substantial amounts of shares in the JV to third parties, without the knowledge or authorisation, of all PETL executives (particularly Caterpillar/Perkins executives), as required.
Further investigation by Caterpillar/Perkins executives showed that this substantial shares transfer had been carried out by forging signatures.
In addition, it was found that Tianjin EW had been sourcing components from local suppliers that were not approved by Caterpillar/Perkins, and who had not met Caterpillar/Perkins QC standards.
In addition to sub-standard components from unauthorised suppliers, Tianjin EW had been re-rating engine outputs upwards without reference to Caterpillar/Perkins engineers.
Accordingly, in late 2002, after lengthy investigations, Caterpillar/Perkins cancelled their JV arrangement with Tianjin EW.
This did not prevent Tianjin from continuing to produce "Perkins" engines. They went on merrily selling their Tianjin EW Perkins, as genuine Perkins engines.
However, Caterpillar does not recognise any "Perkins" branded engine, produced from the Tianjin factory, post January 2003, as a genuine Perkins, and accordingly refuses to associate themselves with these engines produced after that date.
Sizeable numbers of "Perkins" branded engines and parts have been produced from that Tianjin factory, from January 2003.
These have been sold to unsuspecting buyers as genuine Perkins engines, but they are not.
Caterpillar have taken action to prevent the Perkins name being used in an unauthorised manner, but have had minimal success.
Accordingly, there are sizeable numbers of Tianjin Perkins engine owners out there, who think they have a genuine Perkins engine, but these engines have been produced without authorisation from Caterpillar/Perkins, using suppliers and subcontractors that are not approved by Caterpillar/Perkins.
Many of the components used in Tianjin EW Perkins engines, do not meet Caterpillar/Perkins required QC production standards, nor do the materials met the Caterpillar/Perkins specifications.
The Chinese suppliers of parts and components to Tianjin EW Perkins have been supplying substandard components, built to meet a price, not a specification.
Look forward to the same type of thing happening to Continental. The Chinese do not understand "standards"... they specialise in what is known around the traps, as "quality fade".
This is best explained by a Chinese manufacturer who supplies your company with a prototype of your requested item, that meets all specifications of material requirements, metal treatment, and other engineering requirements.
Immediately your companys order is placed with the Chinese company for the item, the Chinese manufacturer promptly commences to source cheaper materials, metal treatments, etc., that no longer meet the required specifications.
As a result, the item fails regularly under normal useage, and your company is left with angry end-users... and often a pile of unsaleable products, due to purchasers shying away, from what is now, a recognisedly inferior product.
The ramifications of Chinese "quality fade" in aircraft engine manufacturing, don't bear thinking about. The problems will commence the minute any component manufacturing is transferred to China.
Chinese Perkins problems...
http://www.nzgenerator.com/admin/doc...ginesChina.pdf