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I had one in a few weeks back that did exactly the same, at the same speed etc. Engine management registered 9488rpm, and it had undone the crank bolt. Hadn't done any damage to box or flywheel though! Pulled the sump off and it had spun big end shells aswell. Safe to say yours will be knackered.
Yes out with the old in with the new (and lapping them in, which is grinding the mating surface to the valve seat.) FYI, if you haven't already taken the head off, chances are the bottom end will be scrap too)
I can put a 3m warranty on it, it would just have to be returned to me for inspection should anything happen. But I knew the car before we broke it and it was a well serviced car.
Engines nowadays don't require running in like the old engines did. We now have stuff like roller rockers etc and machining tolerances are that good now that stuff doesn't need to break in like it used to. The main thing you're running in now is the rings to bore. Which lots of varied load is...
The running in is done in the car, at the factory. That's why they'll always have a few miles on them when they're delivered. Most important time for an engine is the first 25 miles. My 20vt did 20 miles on the dyno, dropped the oil and started kicking it's head in.
Really shows that the GT/GTX series really start working over 1 bar. I'd like to see 2 bar (if you know me well enough I'm never happy until 2bar of boost is flowing!
I've got a 55k mile engine here, slightly down on compression because the valves don't quite seal after a cambelt failure. If you crank it enough I'm sure they'll straighten though.
So here it was in Combe spec;
And I turned the boost up from 1-1.3 bar. (Amongst a misfire and a header tank lid blowing it's seal, which ended the run short)
The timing is set during this process. If it's done incorrectly then it'll be down on power yes. If the dealer has said they don't use torque wrenches keep well away from them