Liability
Sorry folks,
I'm late coming to this thread. I'd say that Richard Bibb [rbib], Paul Dye and Mike W have it pretty well covered. Two things I can add. First, back when President Clinton signed into law the package that included limiting aviation manufacturers liability to 18 years, I remember that an executive at Cessna stated that even with the new law, 30% of the cost of a new Cessna would be to cover them against future liability for that 18 year period. So I think you can safely say that Lycoming engines would cost that much less, if we did not live in the most litigious society that has ever existed on this planet.
I like Mike W's contention that aircraft engines are more closely compared to small marine engines, rather than car engines. FYI, these days a replacement automotive "long block" will cost you $6000 to $9000 dollars for a V-6 DOHC or V-8 DOHC engine. That's just the cost of the parts, not the labor to put it in or any of the related parts to install it.
Buying a new Lycoming, you get a more COMPLETE engine. An automotive long block does not come with any accessories. It also does not come with intake or exhaust manifolds, ANY of the fuel injection or ignition system. The cost of a modern automotive engine supplied as Lycoming supplies theirs, would run $10,000 to $15,000.
To those who think that aircraft engines are not improved, you are wrong. They are improved incrementally, with newer [allegedly better] materials & processes. Often, these "improvements" have teething problems; Think carburetor floats, crankshafts, etc. The Lycoming H2AD engine has improved oiling to the top end of the engine. However, the flawed, original lifter design sank it. Due to the small market size, aircraft engine manufacturers can not absorb the costs of a "screw up", like auto manufacturers can. I'd say that things like the recent crankshaft debacle and the H2AD engine have made Lycoming VERY conservative.
Auto manufacturers also have these problems when they introduce new technology. The current "problem child" for auto makers is VVT [variable valve timing] VVT is a system using pressurized oil to allow the computer to advance and retard the timing of the camshafts. Doing this gains them slight fuel economy improvements, improved low end torque, more power and cuts costs [They can omit the Exhaust Gas Regulating Valve or EGR valve for short] These new systems have proved problematic and engine failures with these systems has gone up considerably.
The design of the VVT system is not the only culprit. Newer auto engines require thinner oils, of higher quality and more frequent changes to keep the VVT system healthy. Owners think that these new requirements are simply the auto manufacturers way of lining their pockets. Want to ruin your new car engine? Keep thinking like that. Keep ignoring the mileage and time limits [you must change your oil at least once a year, regardless of mileage. Some manfacturers have dropped "timed" oil changes down to every 3 months]. I just got a call about this from a customer [with above mentioned mind set] about the requirement for 3750 mile or 3 month oil changes on his new, 2012 Infiniti. Keep going to the "quick oil change" place. Odds are, the oil they install does not meet the manufacturers standards for VVT engines. Even many of the "name brand" oils do not meet the VVT specs, unless they are full synthetic.
This issue has become so bad for Ford, that you can now buy genuine Motorcraft oils at competitive prices. Ford and Nissan seem to be having the most problems with engine failures due to people using substandard oil and not changing their oil often enough. I spend hours every month, trying to educate my customers about the oil requirements of modern car engines [and transmissions. Anyone who thinks you can go 100,000 miles between transmission oil and filter changes is a fool!
] Some people just have to learn the "hard way", to the tune of an $8000 to $12,000 engine replacement [new long block pricing] The junk yard prices of "problem" engines has gone sky high, as the junk yards have 10 buyers for every good, used "problem" engine that they get.
Preventative maintenance is the cheapest investment you can make in your car, truck, motorcycle or aircraft. I apologize for the thread drift. OK, I'm getting down off my soapbox now!
Charlie