Should I be paying £1000 towards labour for a replacement engine for my Volkswagen Scirocco?

I have had my 29,000 mile 2009 Volkswagen Scirocco 1.4TFSI since new. It has been regularly serviced by Volkswagen. Eight weeks ago the engine warning light came on. It was recovered to Volkswagen (a shocking dealer service, never calling me and updating me, etc). They have now told me that a washer in the fourth cylinder has disintegrated and caused marks on the engine. The car needs a new engine. Volkswagen has agreed to cover the cost of the engine and 30 per cent of labour. They originally said labour would be £3000, but now say it will be about £1000 that I have to pay. Is this reasonable?

Asked on 9 November 2013 by LL, Guildford

Answered by Honest John
This has become common with the VAG 1.4 supercharged and turbocharged engine with outputs of 140PS or more. It’s due to a fuelling problem. Yours is the second of these today. But at least in your case Volkswagen is replacing the engine free of charge. Yes, it's reasonable to have to pay £1,000 for the labour.
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