When you crash a car into a wall, the front of the car deforms as if there is no engine. The engine is a very heavy, solid thing inside the car, and it shouldn't deform as easily as the outside panels of the car. Is this going to be fixed?
sometimes in harder crashes the engine may seem to disappear but in reality it is just being hidden by things like the interior and mess in the front there is currently no way to jbeam interiors as the low weight and strength would be WAY too unstable
It's just buried somewhere. Get the parts menu out, point the engine selection tab (like "2.0L I4 engine") with your cursor, and all but the engine will appear transparent.