Geezuz, have not heard of a Golf R engine grenading before but a water pump will do it, happened to one of my cars after a hose blew. They are not going to give you a new car, my humble guess is they will drop in a new engine and you wont even know there was an issue.
Given they have sensors on everything it is surprising your dash was lit up with warning lights.. how long till you get it back?
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