1 liter every 1250km is absolutely too much. The dealer should do something about it!
I don't know how it is in US, but here in Europe the car manual says something like "depending on the circumstances, the oil consumption can temporarily be up to 0.5 liters/1000km".
As far as I remember it is Volkswagen manual which says it can be even 1 liter/1000km.
However, I got my engine replaced under warranty because of high oil consumption. The engine is 2.0T.
The auxiliary device (turbo etc.) came from the old engine.
From the beginning until the first service (~26000 km) my car burned oil 0.2-0.3 liters/1000km (which was, to be honest, too much in my opinion).
After the first service the comsumption increased to be ~0.5 liters/1000km or even more for unknown reason.
I had been keeping the records of consumption by myself all the time and written down each top-up and km's. Then I went to the dealer's with my calculations and they wanted to initiate the 1000km test drive. The result after 1000km's was that they got the same consumption, 0.5 liters/1000km and they told they will replace the engine. The engine was replaced June this year when my car was 23 months old with ~48000 km's on it. Now I have driven about 8000km with the new engine and the bar on the display shows 1/3. So, the oil consumption has not stopped completely, but I am satisfied, now the consumption is more reasonable.
What is interesting, one of my friends who got his A4 2.0T December 2009, had driven it about 6 months/6000 km's, got also his engine replaced. His oil consumption was even higher than what I had. We took our cars to the same dealer on the same day for engine replacement
It is obvious that the 2.0T engines have a known problem, which causes the high oil consumption. The guy at the dealer told me that there is some kind of "repair kit" or similar coming to fix these problems. At the time my engine was replaced, the repair kit was not officially released by the manufacturer so they replaced the engine. Of course the guy did not tell me anything about the repair kit, what it would be.
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