The dealer called me yesterday and gives me some updates. Head is off and the #2cylinder exhaust valves are burnt. They don't yet know the root cause. After discussing the situation with Audi, they want to replace the entire engine! All labor will be covered and half of the materials. . . .$4600ish including tax will be our responsibility. I have yet to speak to the shop foreman who is actually doing the work and the behind the desk service guys don't seem technical enough to explain why Audi thinks the whole engine should be replaced. Regardless we gave them the go ahead and the wife has a new Q5 as a loaner. BTW, I saw the disassembled engine and one of the exhaust valves in #2 has its entire side missing /crisped up. It may take a month for the repairs to be completed depending on how quickly the engine arrives. The new engine will have the updated pistons etc that should solve any oil consumption issues.

I noticed Consumer Reports gives the pre 2012 B8 A4s "black dots" for both engine major and engine minor problems. Our experience certainly reflects this but I suspect most of problems are related to oil consumption issues. We are still not sure whether we want an Audi anymore. Dealer and Audi are showing us some love which does help but nearly $5k for repairs at 75k is disappointing to say the least.
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[QUOTE=eurban;24665871]The dealer called me yesterday and gives me some updates. Head is off and the #2cylinder exhaust valves are burnt. They don't yet know the root cause. After discussing the situation with Audi, they want to replace the entire engine! All labor will be covered and half of the materials. . . .$4600ish including tax will be our responsibility. I have yet to speak to the shop foreman who is actually doing the work and the behind the desk service guys don't seem technical enough to explain why Audi thinks the whole engine should be replaced. Regardless we gave them the go ahead and the wife has a new Q5 as a loaner. BTW, I saw the disassembled engine and one of the exhaust valves in #2 has its entire side missing /crisped up. It may take a month for the repairs to be completed depending on how quickly the engine arrives. The new engine will have the updated pistons etc that should solve any oil consumption issues.

I noticed Consumer Reports gives the pre 2012 B8 A4s "black dots" for both engine major and engine minor problems. Our experience certainly reflects this but I suspect most of problems are related to oil consumption issues. We are still not sure whether we want an Audi anymore. Dealer and Audi are showing us some love which does help but nearly $5k for repairs at 75k is disappointing to say the least.
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So it could have been the valve malfunctioned and stayed open to long and it may have hit the piston. If that is the case they didn't want to replace one piston and either replace the valve and valve seat. Something else failed with this valve. Replacing the engine is the easiest for them and the most costly for you. You pretty much are at their mercy now so take the hit and get it done. By the way they are not losing any money on this job. Good luck and if it were me I would sell it after it was done and move on.