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I am speechless that they're still talking rebuild instead of replacement. I would think that they'll end up spending a LOT more money covering labor hours to go that route than all new hardware would cost...

I mean, to R&R the long block, oil cooler/lines, turbos, it couldn't be more than 12-15 hours... but to tear down the motor, verify specs on everything from the bores to the main journals, vat the block to get all the crap out of it, etc... talk about a full time gig. Most dealerships don't even have the necessary tools to do it right... and on top of that, they still have to pay the labor to R&R everything. I really think that you're on the right track in pushing for a replacement... because there's no way they'd do a rebuild correctly... they'd lose their ass in terms of time/$$.