However you look at it, this is a company product. That product has failed. That will always reflect badly on the company.
I have no axe to grind, but this would make me think twice before getting work done at Ktec. Im sure others would feel the same.
As most people who go to Ktec have road cars, reliability must be very high up on the list of desirables. Its not like Ktec main business is tuning race engines. They tune road cars mainly. In which case this looks bad.
I would be more impressed with a company that supplied me with an engine that lasted 10 years and never went wrong, than one that could 'live way up in the rev range' but only lasted 2 weeks.
Maybe thats just me.
Jenson Button's same Mercedes engine has just won three F1 races in a row. Now that is impressive. Reliability and performance. That is the key.