It's moderately common on VW (and other VAG) cars where the timing belts haven't been changed at the recommended mileage/age.

If it has all been serviced properly - by VW - then your chances of goodwill should be reasonable, at least. But bear in mind that VW will be the most expensive place to get the work done.

For example, lets say that VW quote you £6k for a new engine and fitting, but will give you 25% off. So £4.5k

Whereas a professional engine rebuilder might quote you £2k to rebuild your engine.

All figures are random illustrations, of course.

My commiserations. I once had a very unsettling experience where my 2009 Passat cut out whilst overtaking a lorry. Nearly killed my family of 4. Roadside assistance advised that it was probably the timing belt so I had it recovered to VW dealership. From memory they quoted between £6000-£8000 for a new engine. Even though the timing belt has been changed at 120,000 miles and the failure was at 132,000 miles, they blamed the auxiliary belt having wrapped itself around some other component and caused the timing belt to slip. There were other factors which I won't go into here but I still have my doubts about the precise cause.

I collected the key and a friend towed it to my independent garage who replaced two camshafts and associated components, rebuilt the top of the engine for about £2000.

It was the early 2.0TDI 110bhp bluemotion model which apparently is fitted with camshaft lobes which slide round when the timing belt fails in order to protect valves etc. from bending (forgive me, I'm the opposite of technically minded). Perhaps yours is similar?

My instinct would be caution about going with the main dealer. Get a second independent opinion if you can. Even components used by an independent are covered by the VW two-year guarantee if they fail again.

Good luck. Anted