Abstract: An example of engine remanufacturing in Shanghai Volkswagen united Ltd power assembly filiale was given. The relationship between the product remanufacturing and failure form and material properties was analyzed. The results showed that abrasion failure can be removed by machining operation, fitting new size parts and keeping primary tolerance, but the fatigue cumulative damage can’t be removed. The fatigue life exist notable difference between one time remanufacturing engine and new engine.