First off, how did they find water in the Engine? Yes, if you suck a large amount of water into the Engine, you can damage it, and to varying degrees.
If the engine suffers serous damage or static lock, it will NOT run, and you would find water in it.
If the engine suffered minor damage, and can still run, the heat from operation for only a few hours would evaporate any water out of it.
Did he say they found water in the engine or evidence of water damage?
What specifically is this damage or evidence of water damage? A bent rod I could see as evidence of water ingested static lock, but a spun bearing? Lots of things could cause a spun bearing, you have to do better than that to claim it was water damage.
On top of that, they only found it after removing the engine? that they started under warranty and now that the engine is out, they are going to deny warranty? They should have found the problem before they started the repair, that is outside of the qoute and authorization. Its there responsibility to put the engine back the way they found it, if they messed up the troubleshooting and indentificaton of the problem, no cost to you.
I'd contact Chrysler Customer Service, and Regional Mangers for your area, the numbers/addresses are in sticky posts.
There has been several cases of unscrupulous dealers ripping off customers for more than a thousand dollars, no question, that have been posted on this forum. Granted, we don't know enough to tell if the Dealer is ripping you off, but it does sound a bit fishy to me, its possible.
The air intake design is high up and baffled to prevent the ingestion of water, and if the vehicle is used as intended, any water damage should be a design problem and still be covered under warranty. You would have to drive the vehicle into water up to the a few inches below the hood to ingest water in the intake.
Water working its way into the crankcase and oil? Again, you'd have to drive in water up to nearly the hood for that to happen. Unless seals/gaskets were failing, and that would be a warranty issue as well.
If it was me, I would tell the guys they should have figured out what was wrong with the motor before they pulled it, you would NOT have authorized it if it was NOT covered under warranty. Put the motor back in and I'll live with the noise, I'm NOT paying for you mistake and failure to identify the problem before pulling out the motor.
Rod Knock is probably one of the most mis-diagnosed problems, and the source of the noise is often something else. Rod Knock can have a lot of different root causes and often fixed by replacing a few parts and NOT an entire engine, at the same time rod knock can be from a fully worn out motor and it needs to be replaced.
After the motor was back in, I'd get a 2nd opinion from an independent shop.
Chrysler re-imburses Dealers for Warranty Work, but they re-imburse them at a much lower rate than Customers pay for out of warranty service. So there is an incentive there for the Dealer to get a customer to pay for repairs instead of doing it under warranty, they will make more money if the customer pays the bill rather than Corporate.
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Last edited by Mongo; 04-29-2011 at 08:33 AM.