Remanufacturing restores used automotive engines to like‐new condition, providing engines that are functionally equivalent to a new engine at much lower environmental and economic costs than the manufacture of a new engine. A life‐cycle assessment (LCA) model was developed to investigate the energy savings and pollution prevention that are achieved in the United States through remanufacturing a midsized automotive gasoline engine compared to an original equipment manufacturer manufacturing a new one. A typical full‐service machine shop, which is representative of 55% of the engine remanufacturers in the United States, was inventoried, and three scenarios for part replacement were analyzed. The life‐cycle model showed that the remanufactured engine could be produced with 68% to 83% less energy and 73% to 87% fewer carbon dioxide emissions. The life‐cycle model showed significant savings for other air emissions as well, with 48% to 88% carbon monoxide (CO) reductions, 72% to 85% nitrogen oxide (NOx) reductions, 71% to 84% sulfur oxide (SOx) reductions, and 50% to 61% nonmethane hydrocarbon reductions. Raw material consumption was reduced by 26% to 90%, and solid waste generation was reduced by 65% to 88%. The comparison of environmental burdens is accompanied by an economic survey of suppliers of new and remanufactured automotive engines showing a price difference for the consumer of between 30% and 53% for the remanufactured engine, with the greatest savings realized when the remanufactured engine is purchased directly from the remanufacturer.