I'm not sure that's entirely the case with the Voodoo's because they were not allowing the dealers to even open them up (with only a few random exceptions, which were probably techs just diving in without approval). I think in the case of the Voodoos, there was more at play than dollars and cents. I think factors like that the engine is totally unique and a bit of a flag ship display of engineering for Ford, and that they are hand built, all leads them to want to keep a lid on any potential problems that could be the result of flawed design. Other than that, your statement above makes total sense (although, $2,500 seems pretty low a threshold to me, but what do I know, I sell insurance for a living ;-) )Just an FYI to major component replacements covered under 3/36 and 5/60 warranty.
Usually the criteria for replacing a major component such as an engine is based on cost to replace. Meaning if the cost to repair is within $X, the repair will be made of course providing the repair is possible (ie: block not ventilated).
IIRC, for engine replacement at a Ford Franchise the threshold is $2,500.00; meaning if the diagnosis was that X needed to be done to fix the engine problem, which would be R&R (cost of parts, fluids, labor, etc.) and that repair would exceed $2,500.00, then it qualifies for a replacement.
Everything comes down to cost and efficiency. The Ford Franchise isn’t going to tie up bays for weeks at a time due to extensive repairs; that’s time and money lost. Their goal isn’t only to fix the problem and satisfy the customer, but to get the vehicle in/out in a timely manner (when possible and dependent on available parts or assemblies) to keep turning daily profit.
So there’s protocols called out in internal docs that outlines cost of repair vs cost of replacement.
Even though there is an outlined threshold, there are still steps and processes that need to go through approvals after the initial diagnosis.
Not every engine issue requires a replacement - but if the tally of labor and parts exceeds that threshold - a replacement is authorized.
This not only applies to engines, but major components such as the transmission and rear differential. If it cost less to pull & replace entire assembly, rather than sourcing multiple components, putzing around for hours or weeks, that is an option based on the documented threshold and approvals.