Volkswagen Golf needs a new engine after cam chain failure - what can I do?

My VW Golf mk 6 1.2tsi could not start last week The AA took it to my nearest VW dealer, Arnold Clark, Kilmarnock Rd Glasgow. They car is less than 4 yrs old, has a full service history and covered 46k miles since new. The garage said the chain had dislodged and it would cost £800 to repair. They contacted VW who said they would make a goodwill contribution reducing it to around £300. However today after they replaced the chain I was contacted to say the car now needs a new engine. Having done some research it appears VW knows there is a problem with the tsi engines. I have contacted VW and they are going to get back to me. Any advice would be appreciated.

Asked on 20 January 2015 by CMacintosh

Answered by Honest John
Eventually VW in Germany was forced to admit that it had a problem with the manufacturer of the chains who was using worn out equipment to stamp them out resulting in burrs on the links that, together with VW's unwise 'Longlife' oil service regime, was leading to chain failures.
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