Follow up summary to my previous posts. Timing chain on Mk 6 engine slipped. Confirmed by VW service centre after compulsory engine strip down by VW Australia. Engine destroyed beyond repair.

VW Australia have agreed to pay cost of engine strip down plus 50% cost of new engine including starter motor, and 50% cost of labour charged at warranty rates.

Our thanks to several people ("BJ" Tilford Hobart, D_rren JMC hobart, H_mish (Herbe_tSmithFreehills), plus many others who helped us, including some on this forum, through the long process of receiving a goodwill claim from VW Australia.

Our thanks also to VW Australia for eventually providing goodwill in our case, and Kirste_n B (VW Australia) for her professional handling of our case.

A successful and mutually beneficial outcome for both parties.

If you are reading this thread and would like more information about timing chain issues you have encountered please PM me. During this process I have gained valuable insight in how to go about a goodwill claim with VW Australia, and also have received legal advice from a top tier Australian law firm regarding my chances of winning a lawsuit in such a case in Australia, "fit for purpose" advice and also advice about the likely outcome of compensation following successful legal action when "betterment" is applied in this context.

Good luck to all concerned, and my advice would be to have your timing chain checked immediately if you think there may be an issue with it.