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Thank you for all this information. We will have a go at the "fitness for purpose" argument and will let you know how we get on.

Thanks to both of you for your comments and information. We will keep chasing VW , it just feels wrong that they knew about the fault on a limited number of vehicles, didn't make more effort to inform us (especially when they have said it was a hazard) and then wash their hands of it at the end of ...

Golf mk7, registered May 2014
Engine no. is CJZB516893
4 cylinder, 1197cc, 83 bhp

Below is exactly what the Dealership technician put on his technical report:
Bolt for the inlet camshaft adjuster has come out and has damaged the camshaft carrier and the cylinder head which is now leaking engine oil ...

Not sure if anyone is still following this thread, but as the engines with this fault are now out of warranty, perhaps there will be some more interest. We have a Golf 1.2 TSi which unfortunately we did not have serviced by a VW Dealer. Just out of warranty and 35k miles the tensioner pulley bolt ...