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Quick backstory: I've owned 8 volkswagens in my short driving life. Loved them all. Love the way they feel, the way they drive. Love them for the same reasons you do. I've even made a trek to Wolfsburg, Germany.... VW MECCA! (my wife is working on getting me into therapy)
My ultimate dream vehicle? the Touareg v10 TDI. Purchased an '07 two years ago. Might be my last VW.

Just did a COMPLETE engine replacement on my 2007 V10 TDI. Was making a left turn into a parking lot, heard a SNAP… then horrible grinding noise. Immediately lost all power to the wheels and steering. VW initially thought it was a power steering shaft and pump but it was part of the extremely complex (and impossible to repair) gear drive. All the gears are perfectly timed like a swiss watch, so when they get out of alignment……….. NEW ENGINE!
Volkswagen quickly gave me an estimate to replace the engine: $33,000. They quoted it to me with a straight face! HA! I laughed (then cried).
I told them there was no way I could afford an engine that was over 3X the value of the vehicle. They were able to find a less expensive used option.

I’m still upside down on my car loan. Thanks to the Dieselgate scandal, ALL volkswagens have tumbled in value…. so replacing the engine was my only option (other than repossession which I didn’t want) . I purchased a pretty comprehensive warranty when I bought the vehicle 2 years ago and fought with the warranty company on multiple occasions when the engine needed to be replaced. Warranty company FINALLY agreed to pay $13,000 for the new engine and cancelled the rest of the warranty (due to the high payout). So I’ll get an engine (with 70,000 miles + 3 yr warranty) and HOPEFULLY get a few more years out of it. I chose to have the turbos rebuilt (to the tune of $3500) but it’s still not bad considering I’ll HOPEFULLY have a fresh start. One of the turbos was leaking quite a bit of oil and the other wasn’t far behind. My Volkswagen dealer has had my touareg for 3 months now…. trying to fix it. 3 months! They’ve stopped calling me. They’ve given excuses for why it’s taken so long. They’re clueless. They even told me "we've never done anything like this before. We might have to stop and read through the process". I took it to the dealer BECAUSE I THOUGHT THAT'S WHERE THEY'D KNOW THE MOST ABOUT FIXING THESE THINGS!

A Volkswagen is only as good as your dealer (or mechanic). Let me repeat that. A volkswagen is only as good as your dealer (or mechanic).
I know these vehicles are expensive to repair and maintain, but my dealer can't even maintain them! I live in Southwest Missouri, so my best option is a 3 hour drive to KC or ST Louis. VW hammers into their customers that THEY are the only ones that truly know how to fix the complex issues their cars create. My dealer has failed to fix my Touareg's issues in a timely and professional manner. I can't buy another VW if my dealership is the one SERVICING it.

My VW has failed because of a dealer failure.

The saga continues.

This touareg is the best and worst decision I've ever made.
 

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The engine replacement should have taken 3 days tops once they had the newer engine.

Okay, so you are sensibly doing some other bits and pieces to the car which might double the time and there are some inaccessible sensors you should replace as well and the alternator and aircon compressor couplings too.

Overall, a couple of weeks work . . . . .
 

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Have you made contact with VW customer care, they do handle situations like this and can put pressure on the dealers. Also contact your local BBB and Dealers associations and find out what they can do to help you too. If that dealership doesn't have a Touareg or V10 mechanic, then ask which one does, or call around to the other dealerships and ask if they have any experience working on the V10 or Touareg.
 

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Ha, having had my drivetrain completely apart, (couple of times) I can also verify that it does not take 3 months to do an R&R. 3-4 days at the most.
 
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