Volkswagen: 2002 Passat with plugged pick-up tube, sludge problem, autorx

Question
My 2002 Passat gave a "low oil presure warning" the other day.  The dealer says that the oil pick up tube is clogged causging the oil presure to drop to 1.6 bar.  They said also that the cam timing sensor is failed and was likely caused by the low oil presure.  They have recmmended over $3000.00 in repairs including a new timing belt and water pump.  They also said they need to do an engine flush and replace the oil with synthetic to stop the sludge problem. The car has 112K miles on it.  Seems to me this sludge problem is a design issue that VW knows about otherwise why would they be recommending going to synthetics.  My question is this...Is there information out there that I can use to push VW for some redress on this?  They are saying that unless I can show proff of all required service they will not take responsibility.  Any info will help.  Thank you in advance.

Answer
VW is aware of the issue and extended the warranty on all 1.8T engines to 8 years.  However, you do need to have EVERY service receipt and synthetic had to be used after the service bulletin.

I don't see how the cam sensor failed.  Are you sure it wasn't the cam chain tensioner?  That's hydraulically powered by the oil.  It's also way expensive.

There is a product called autoRx with which people have had good luck.  For $20 a bottle, it's worth a try.

You mentioned the timing belt and water pump.  Are you still driving in the original belt?  You must get that changed right away!  If it snaps, you lose the engine and you've taken it 50% over it's expected life.  It is normal to change the pump and belt tensioner and rollers with the belt.

PS-  If you can find an good independent VW mechanic, you can lower that bill a lot.