Are remanufactured auto parts a smart way to go to keep your ailing ride rolling?

Well, they can be. But the savings compared to new replacement parts aren't as great as they once were, and finding a remanufactured version of the part you need may become more difficult as the industry that produces them is facing an increasingly difficult business climate.

In the past, a mechanic would often repair or rebuild most broken or worn-out components, anything from a complete engine or transmission to a generator or starter motor.

Then along came progress in the form of rapid advances in technology, dramatically higher service shop labour rates and time-pressured modern motorists demanding the instant gratification of getting back on the road without delay.

A couple of decades ago, these emerging factors helped create a boom for the parts remanufacturing industry, which now does about $1-billion worth of business a year in Canada.

Remanufacturing, not repairing, is the key terminology. Many faulty components were no longer just made to work again; they were now replaced by off-the-shelf units that had been literally remanufactured. Brought back to original equipment specifications by companies set up to do this in volumes that made economic sense.

Such a company, whether dealing with a complete engine or something as simple as a water pump, receives your old part and uses what is salvageable as a "core."

An engine's basics, the block, crankshaft and other major components are refurbished and reused, while worn-out components, such as bearings, pistons, valves, seals, are replaced with new bits.

The end product, whether a complete engine, water pump or constant velocity joint, will -- if the remanufacturer is doing an honest job and cutting no corners -- be virtually like new.

There are a number of advantages to this process. The cost for a remanufactured component can be 30 to 50 per cent of what a new replacement would be and, because some original parts are being reused, the energy and material that would have gone into producing new ones -- an alternator body or a transmission case, for instance -- is being saved; plus the old ones aren't going into a landfill.

It all sounds like a win-win situation, but the auto parts remanufacturing industry is currently being forced to re-evaluate the viability of many of its operations.

Randy Moore of Mr. Transmission, one of the declining number of companies that still rebuilds transmissions, also serves as chairman of the Retail Council of the Automotive Industries Association.

He says bluntly that the remanufacturing business is dying, and that while a number of companies remain, the economics are getting increasingly tougher. Many newly manufactured replacement components now cost virtually the same as remanufactured items, he says.

Pressure from offshore parts companies, a number of whom are producing to higher quality standards than in the past, continues to grow. And even the original equipment manufacturers (the car makers themselves, who have traditionally been the most expensive source of spares) are becoming more competitive. Manufacturers' campaigns that urge owners to purchase only genuine original equipment replacement parts are also having an influence.

"When the margin [between remanufactured and new] gets down to 10 to 20 per cent, it's a case of give me the new one," Moore says.

The type of part involved seems to make a difference. Rebuilt transmissions and complete engines (that can keep a still-viable vehicle on the road) are big-buck examples, but Greg MacDonald of Dixie Electric Ltd. in Concord says there is still a high demand for the remanufactured alternators and starters it produces. And he doesn't see that changing.

For his products (and a variety of others), the consumer may be offered four choices: a replacement sourced from the original equipment manufacturer; one remanufactured under its auspices; a part sourced off-shore, or an aftermarket component produced by a company such as Dixie Electric. In some cases it may come down to what's available.

Moore's advice when it comes to replacement parts? "Deal with a reputable company that offers a solid guarantee on the product, whether it is new or remanufactured."

He says if you don't recognize the remanufacturer's name (and you likely won't) then you need to feel comfortable with the people you're dealing with who are supplying the part.

In many cases, buying remanufactured components still makes sense, and in some instances, usually for older vehicles, they may be your only choice.