Why won't Volkswagen cover the whole cost of a DSG gearbox failure on our Golf Match?

I have a Volkswagen Golf Match TSI 1.4 DSG Automatic which is three years and eight months old, mileage 30,000. It's been fully serviced by our local Volkswagen supplier. I’ve been advised that we have ball bearing failure within the differential within the gearbox, which now requires replacement. The cost of a new box is suggested at £7,500. An exchange rebuilt box costs £3,500 plus fitting. Prior to the last warranty service we had taken mechanics out twice to complain of a noise. The service notes state we "should monitor the position". We have negotiated a contribution from Volkswagen of 80 per cent of the costs. We feel let down on a premium car, having been Volkswagen drivers for over 20 years, and believe Volkswagen should bear the total cost.

Asked on 9 January 2012 by TS, Oxted, Surrey

Answered by Honest John
There are stories of problems with dry clutch DSGs in China, the USA and now Europe. On the other hand, there are probably more DSGs and s-tronics in the world than all other twin-clutch transmissions put together. 100 failures makes a news story. But 100 failures out of a million transmissions is obviously much less significant. VAG is the most profitable carmaker in the world, largely due to the perception that they make ‘premium cars’. In your case an 80 per cent contribution to an out of warranty repair seems fair to me.
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