Why won't my RAC warranty cover my Audi A6's engine failure?

My 2008 Audi A6 2.0 TDI had an engine oil pressure pump failure in November 2012. Audi refused to assist on the basis that it had not been purchased or maintained by an Audi dealer. An engine rebuild at my own garage, including a modified oil pump, cost me £3500. I bought a Gold Warranty from the RAC in January 2013. On 8 September 2013, 30,000 miles on, the engine failed again.

The RAC arranged two independent engineers inspections. Both concluded that the oil pump had failed, causing serious engine damage, but the RAC will not honour its warranty as it says this is a manufacturer fault. Copies of all reports have been sent to Audi UK but to date I have not received an acknowledgement or comment from them. I feel helpless and likely to lose serious money again. Where does it leave me with Audi, the RAC and my own garage?

Asked on 28 December 2013 by JM, Bath

Answered by Honest John
It is a well-known fault, but one for which the manufacturer can claim it has no liability because of the independent servicing and the independent fix first time round. However, the RAC sold you a warranty and when you went to invoke that warranty the RAC claimed that it did not apply to a manufacturing defect. You should sue the RAC via the Small Claims Track of the County Court claiming that if the RAC was not prepared to cover the car for a known manufacturing defect, then why did it sell you the warranty in the first place without making the manufacturing defect a specific exclusion?
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