Thanks very much for clearing my head,
@cb1111!
According to my USA Warranty and Maintenance booklet, in the section on "What's not covered" on page 7, it says:
Damage or malfunction due the misuse, negligence, alteration, accident, vandalism, or fire
This limited warranty does not cover:
- Damage, malfunctions, or symptoms resulting from modifications of the vehicle, including but not limited to the installation of engine management components, not approved by Volkswagen
From the language, doesn't the dealer have the burden of proof to show a software tune directly caused my engine damage/failure? By extension of the statement above, there exists "damages NOT resulted from the installed engine management components modifications."
What happens if I tell the dealer that, what proof do you have that it is the software tune that caused my engine failure, not a "defect in manufacturer's material or workmanship"? Can you say conclusively that ALL engine failures like mine that you've seen are from tuned vehicles?
They do, and you'd have to take them to court. In this case, they would win, as again, knock and excessive heat is what breaks ringlands. Do you have evidence of what your knock was pre and post tunes? EGT's, etc...
Even if your did, it's a long road.
This is the reason I always buy at mod friendly dealer and have them do all the servicing. I go by once a week and utilize the free car wash they offer and talk about cars, racing, and shoot the shit. One of the service writers what having an issue getting an appointment at our radiology center. I took care of it for him.
I can't say if they'll cover my engine if I have a failure like yours, but in the past, with other brands, I've gotten a ridiculous amount of stuff covered that they could have told be to pack sand. I also tend to buy from the same couple dealers. VW in St. Augustine and Subaru of Jacksonville. I have friends that work at both that I autocross with also.
Think about it from a dealer standpoint. Why would you help some dude off the street that you don't know?
And I'm not joking about my suggestion. Have a good indy shop look at the cylinder walls. Based on you documentation, they didn't see any head or cylinder wall damage with the scope. If they aren't trashed, hone, replace piston, and either sell it or drive it till it dies on the stock tune.
By the time it dies again, the car will be worth more as a part out than you could sell it for.
The STI I did that to is still kicking 10 years later. It's all about the condition of the cylinder wall.