Hello Phill,
Welcome and thanks for joining.
Sorry to hear of your ongoing issue, and to me, I think there is just one simple question to ask, and be answered here:-
Did you buy this car from an Audi dealer, or Audi U.K./Audi’s warranty provider?
The answer of course is an Audi dealer, so your contract is with them, and they have to repair the vehicle irrespective of whether they can reclaim their outlay or not. If they can’t - tough - unless they can prove that you ‘damaged’ it.
Not being critical, but I think you’ve left this debate go on too long, and perhaps understandably dealt with a Sales Manager.
If this were mine, once any element of ‘we ain’t going to fix it’ came in, I would have been addressing the resolution directly to the dealer principal, and not a Sales Manager.
A carefully worded assertive and time limited e-mail to the dealer principal would be my urgent way forward.
Perhaps you could let us know how you get on Phill.
Kind regards,
Gareth.