Timing chain failure on Skoda Octavia 1.2 TSI - what are my options?

I bought a used (2011) Skoda Octavia 1.2 TSI from a dealer in 2012. Two weeks ago, parked normally on (flat) drive in evening. Following morning, engine died before car could be put into gear and driven. After being towed to a local garage, I’ve been told the timing chain has snapped and the car needs a new engine.

The estimated cost of a replacement engine is £5000, which means it’s an effective write-off because the vehicle is only worth £6000. The dealer doesn’t want to help and I’m aware of this being a common failure on the 1.2 TSI engine. What should I do?

Asked on 15 February 2015 by haggis4me

Answered by Honest John
This is becoming increasingly common on chain cam 1.2TSIs, whatever VAG car they are fitted in. Another reader had the same problem with a SEAT Leon 1.2 TSI last week. A German magazine investigation established that the cause was burrs in the chain links from the manufacturer using work out equipment to stamp them out, combines with VAG's ridiculous longlife oil service regime. VAG is well aware of the problem and switched these engines to timing belts in 2013. So it's worth pushing for some help from the manufacturer.
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