It's simply incomprehensible how any of the aviation engine manufacturers companies can lose money. They're selling old rope. What R&D costs? What developing costs? They're peddling WWII engines for $50.000 a pop.
Not sure this is quite correct.
My new IO390 has roller tappets, counterbalanced crankshaft etc. It is exactly the same shape as my old engine so it fits without any modifications.
With a new (uncertifed) 180 HP Lycoming for around $24,000 and a 100HP Rotax for £14,000 there isn't much of a price difference and the litres per hour per HP are about the same.
I suspect the weight/HP is similar if you include the radiator, coolant and oil tank.
I do think the Lycoming flat four is criticised unfairly. It is very strong, doesn't need a gearbox, and has a huge bearing to support the prop.
My desire would be for Lycoming to work on allowing more of their engines to work on Mogas. Perhaps by retarding the ignition on some of their higher compression engines.
Regarding the Chinese ownership. I expect that more and more parts will be made in China and just assembled or final badged in the US. This is OK as long as some one is keeping an eye on the quality. My concern is whether the new management will have the same attitude to quality as the previous managment.
Most Japanese electronic goods are made in China but they apply their quality standards so you would never know.