When engine is replaced, for recall. Is it replaced with a new engine or replaced with a re manuf. one?

Hello, They have the option to use either, as long as it operates within specifications. The logic is this: your vehicle needed its used engine replaced, so they are providing you with a re-manufactured unit, which is also used, but rebuilt to standard. In any case, it's just great that they stand behind their product and replaced your engine with one that meets OEM specs.