Audi Repair: Flooded water, audi a4 v6, chevy dealership

Question
My (ex)friend was driving my 2002 Audi A4 V6 3.0 and he took the car to a car wash. When he started the engine, he said he heard a weird noise and the engine didn't start. He popped up the hood and it was flooded. The car had to be towed to a Chevy Dealership (no Audis here) and they said the engine was totaled, US$ 10.000 for a new one. Is that "so simple" ? Is it possible ? Can't you just rebuilt the engine ?

Answer
This sounds very weird.  Unless there was so much water that the water entered the engine itself and caused a hydraulic lock, the engine should be repairable.  Can you get details of their diagnosis?  I would get an engine out of a totalled car of the same age, not a new one...  Good Luck,  Jan