HOW TO START TORQUE CONVERTER

REBUILDING? HOW MUCH WILL I EARN?

How much does it cost to open a workshop for

torque converter rebuilding? What equipment will
be needed? How to estimate the demand for TC
rebuilding in a region?

KINERGO.
BECOME PROFESSIONAL
Materials of the seminar AutoTransTech-2015

What is the technical process of TC rebuilding in theory?

(In actual work it may slightly vary for different operators):
1. Oil drain
2. TC cut-open procedure
3. Cleaning of the details
4. Preparation and reassembly of the internal parts
5. Friction component adhesion
6. Welding of the TC top and bottom halves
7. Air leak test
8. Internal clearance check
9. Balancing

Is it necessary to buy the complete set or are there any more or less required elements?
It is difficult to divide the complete set of equipment on more important and less important equipment since each
of them executes a process that cannot be excluded from TC rebuilding technology. There are certain elements of
the equipment that are not too sophisticated and companies prefer to produce them on their own, if the required
resource base is available: machines, engineers, necessary sketches, time needed. However, a number of equipment
elements are difficult to produce because they require high precision in manufacturing, specific components, and
tests in real conditions, not in theory. The most vulnerable point in TC rebuilding is welding of the halves of the
converter because it is necessary to observe the alignment of the positioning of the pump wheel (hub) and centering
pilot. Ideally, the hub and the pilot must be placed on the same axis. But in practice this cannot be achieved, one
way or another there will be imprecision in the arrangement of these elements after welding; the absence of
alignment results in runout. The task of the welder is to reduce the runout to the lowest possible value. In our
workshops the maximum allowable runout according to the technology applicable is 0.15 mm. The same applies to
the procedure of friction bonding. It is important to observe the parallel alignment of clutches bonded, pressure,
and temperature. If this will not be done according to the technology then the clutch will not endure pressure impact
and the converter will fail before the warranty period is over. Anyway, you have to understand that the whole line
of equipment is designed to maintain the uninterrupted flow of repaired converters. So, if an equipment element
designed by you fails for example, the air test stand the entire working process will halt, as a result, there will be
displeased customers, loss of time and money. Therefore, we recommend you to purchase a complete set the
functionality of which is time-tested and certified by the manufacturer's warranty. KINERGO equipment line ensures
the well-organized and efficient torque converter rebuilding.

Is balancing stand required?

Here an honest answer should be given according to the experience and the results of the research of this issue in
the market. The manufacturer balances torque converters in a completely different way. Every detail of the
converter undergoes its own process of balancing, top and bottom parts are balanced separately. After this welding
of the halves is performed. Since the welding seam comes in an even layer around the entire circular curve of the
converter, after the welding process the imbalance normally does not appear. In workshops the balancer is more or
less a marketing tool (in the case of average civilian vehicles) and it is rarely used for its intended purpose. However,
there are several cases when it makes sense to resort to TC balancing: if your Client prefers to drive their car pushing
the engine up to 6 000 RPM and above this option may be needed to eliminate the imbalance; the second case is
the use of donor converters, i.e. when your converter is made from several TC. In this case there may appear an
imbalance. If you have an open space of the workshop and the table of orders when your balancer and the balancing
process are visible to the customers, this will certainly play into your hands in terms of marketing. However, we do
not recommend spending money on this stand in the beginning. In the future, if your customers will demand that
you will acquire one for your needs. Therefore, in the case of lack of resources we recommend you to postpone the
purchase of this stand until the time when it is actually needed. Instead we recommend to purchase Torque
Converter dyno in future, that is currently being tested by our engineers for the market release.

How many persons may work on KINERGO equipment line at a time?

Technically, one person may cope with all the duties. On average, the TC rebuilding line where 150-200 converters
are rebuilt monthly will require the work of 3-4 persons: 2 technicians and 1 lathe operator (possibly 2 lathe
operators). The most efficient technical economic model for one set of equipment is 200 rebuilt converters per
month for 4 employees.

What space and technical conditions of the facility are required?

Optimally, 700-1100 sqft will be enough. This space will allow you to conveniently install a complete KINERGO
equipment line, 2 lathes, workbenches, and shelves for rebuilt units and those that are taken in for rebuilding. It is
possible to install the rebuilding line on 500 sqft, our fellow TC rebuilders have the experience of installation of the
complete line in a marine container but it is necessary to understand that there should be some space left for future
development. On the next stages you will wish to install automated ATF drain stand or automatic washer but on a
very small area this will be difficult to accomplish. There will be required a compressed-air line or a compressor,
balanced system of ventilation, and 22 feet high ceiling as well as everything that meets your local requirements of
the authorities.

How does a Starters kit of the equipment look like?

The launching set represents a full-fledged equipment set required to start the rebuilding of up to 300 torque
converters per month (including ZF 6HPxx series converters):
SV 10.003 welder
NF 03.400 piston bonder
SG 50.500 air test stand
TZ 03.800 internal clearance check stand
IN 06.001 friction mechanism preload check stand for 6-speed ZF 6HPxx
riveter (pneumohydraulic)
two sets of tooling (a set for TC hub replacement and a circuit table for a lathe).
Total cost is 35,575.00 USD.

What equipment apart from the machines produced by your company will I need?
How much may it cost?
You will need a lathe, a set of tools, workbenches, and a ventilation system. On average it costs 10 000-15 000 USD.
We recommend a reliable used lathe.

What skills and experience should technicians working on KINERGO equipment have?
Specialists-fitters may work quite efficiently on KINERGO equipment. Special attention should be paid to the
experience and skills of a lathe operator since the TC cut-open process is a very delicate moment. It will cost a big
sum and it will be difficult to rebuild a converter that was cut-open wrong.

Where and how can the specialists get proper skills?

We conduct the training of your employees in our own TC rebuilding workshop on the principle master-apprentice.
The training at the moment is free of charge at our own facilities in Europe after equipment purchase. We are
developing our own training center in California and we should launch it in soon future. Alternatively, we may engage
our expert to visit you at your workshop. The terms of collaboration in this case will be defined by the contract. The
process of training of the specialists takes a week on the average. The cost of alternative training at our distributors
facilities depends on the training place selected. A distributor will provide more detailed information. Apart from it
we are developing our online web based training center with QandA and videos on how to rebuild TC.

How much does a rebuilt TC cost? How much does a new converter cost?
This issue is interesting especially for those who are trying to estimate the economic model income and expenses
in particular. On average in USA the price range is as follows: 80 USD is the lowest price taken for rebuilding of a
converter with plain design and 250 USD is paid for rebuilding of a 6-speed ZF along with spare parts. However, the
situation differs from region to region. It is necessary to keep in mind the fact that the ultimate consumer will have
to cover the delivery of a rebuilt TC if they are 500+ km (300+ miles) away from a TC rebuilding workshop. This may
be a very important factor because often delivery costs are higher than those of complete rebuilding.
To comprehend the situation fully it is necessary to know the average cost of TC parts that are being changed.
Average cost is around 15 USD. The cost of the spare parts for converters with a more complex design (such as
6HP26, for instance) will be up to 80 USD but the price of the rebuilding itself will increase as well the net profit
will remain almost the same.

How much does a set of TC spare parts that should always be available in your stock cost?
2 500-3 000 USD for 50 rebuilt TC per month and forthwith increasingly. The money may be saved on friction disk
restoration. It means that instead of purchasing new disks you may restore these discs in-house. By doing so you
will save up to a half of the sum that you would pay for the new disks.

How can I estimate the demand for TC rebuilding services in my region?

It is necessary to estimate the population of the region, proportion of cars with automatic transmissions, number of
TC rebuilding workshops that have their own equipment but this is more of a technical method. It would be more
reliable to have an average cost of the rebuilding of a single TC (so far, virtually) and call to the automatic
transmission rebuilding workshops in your region and inquire on what terms and in what quantities they will provide
TC for rebuilding. Only by doing so you will achieve convincing and correct information.

I bought your equipment and the business did not go well. What should I do?
This concerns coverage of the risks, i.e. what will I do with your equipment if I won't handle my business and TC
rebuilding line will drag it down instead of bringing it to a higher level as desired? In the worst-case scenario you
may sell the equipment. We will help you with that. The demand for used equipment seriously surpasses the offer.
It is really scarce. There are two conclusions to be made: 1) few or no people want to sell the purchased equipment
because the business goes well; 2) it will be easy to sell it.