I don't have a huge load of experience with trying to get oil consumption fixed, but i'll tell you what I did to get mine fixed free of charge.
First off, why did Audi off the bat goodwill 65% of the fix? Because they know it's a problem with these cars. Manufacturers don't just put a TSB or recall on anything, and for them to put one on something as big as an engine job, it has to be pretty significant. I would pressure Audi or the dealership to goodwill at least 85%-90%. Audi should be standing behind their product in the sense that any other brand with a vehicle nearing 100k shouldn't have to have an engine overhauled. That's a pretty expensive service interval; (Every 10,000 Miles - Perform Oil Service, Every 100,000 Miles - Replace Engine).
There's no reason for them to be goodwilling a little more than half. This is pretty much 95% their fault, maybe 5% your fault. It should be almost entirely on them. Not being biased, but I work for a BMW dealership. BMW's customer service is unrivaled. I wish Audi responded to customers like BMW does. You paid for a repair that had a TSB put on it on a later date? Here's your check to reimburse. Your 2011 328i has 65k miles but the engine failed? Open a PUMA case, a few days later you have a brand new crate engine en route. What happens when Audi pisses off its customers? They're going to migrate to a different brand.
More onto me, when I had the problem with my car, it was a 2010 A4 with 91,000 miles. Thing burned 1 quart every 200ish miles. At first they didn't want to give me a penny, but after writing more emails than I really needed to AoA, my service center, calling every day to see the status of my car, threats to switch brands, complaining that I've bought numerous cars from the brand and this is going to be the reason I switch, they decided to fix it for no charge. Obviously, they wanted to see my service history to see if I had actually changed my oil at the required interval. I HATED being that guy, but this is about my car, needing a serious overhaul, at 91,000 miles, with a 5,000 oil change interval.
Best of Luck.
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