Audi S7 engine failure @ 30k miles, under 4 yrs old!

[drgekko]

I've been a proud owner of an Audi S7 until the engine decided to die on me one morning during the school run. It was recovered to the local dealership and they said they would need 24 hours to investigate it at a cost of around £3200! They said it was probably a timing chain issue. Anyhow they've stopped all work and said it needs a new engine at a cost of at least £2500! I've contacted Audi UK about this to argue that really, it shouldn't have happened in the first place and awaiting their response. There's no way I'm paying that. Any other ideas of what I can do? Not entirely sure I can ask insurance to write this off?