Unless you are willing to pay Todd or someone with experience and a bit of pull to tear it down far enough to prove it does or doesn't have a thrust bearing in it you are wasting time and $$$. If it has one your'e screwed! If not I suspect they might change their tune rather than all the bad publicity the would get here.
Don't think it's worth the time and money to pay someone to tear it down. I sent the response below to the Piaggio rep., and will await her reply before determining next steps (I'm not holding my breath). In the likely event that they leave me holding the bag, I'll likely pursue a V7iii engine swap just for kicks, which will give me a good excuse to finally get down to Todd's shop! Will let ya'll know what happens.
Text of my response:
I am surprised and disappointed to hear that this is the final assessment from Piaggio, and would like to know who I can speak with to pursue this at a higher level. I object to the characterization of the condition of the oil in my engine sump, and to the statement that it "...appears that maintenance was not completed to Moto Guzzi Service specifications...". I go to great lengths to ensure that my vehicles, including three motorcycles, are properly cared for, as I hope has been evident in the descriptions and documentation that I have provided. Please share my notes below regarding these topics with whomever appropriate, and let me know how I can appeal this decision at a higher level.
Maintenance
All maintenance for my V7ii was performed per service manual specifications, and in a number of instances, services were performed before they were required per the service manual. Evidence of the services that were performed was provided to you. You stated in your email that it "...appears that the maintenance was not completed to Moto Guzzi service specifications as indicated in your owner’s manual.". Which specific services do not appear to have been completed that would lead to engine seizure at such low mileage?
Condition of engine oil
Regarding the description of the engine oil in my V7ii looking "like sludge", and that this would be used as a reason for invalidating the seized engine claim:
I performed an oil change in June, 2019 with an OEM UFI filter and Motul 7100 4T 10W-60 (both per specifications in the service manual) at 8998 miles. Additionally, I regularly checked the oil level at 500 mile intervals after the change to verify that it was within the specified range: between the "min" and "max" marks in the hash mark range on the dipstick. The oil had just over 2000 miles on it when the engine seized (well under the 6000 mile change interval), and looked very fresh when I checked it (hot) before my last ride; it still had much of the red color that Motul has when it is new. I checked the engine oil level before my last ride, when the engine seized, and again verified that it was within the range specified in the service manual.
The tech at Munroe Motors told me that he decided to "drop" the oil from my bike, and found that it had some white foam/sludge. This is common in small block Guzzis before the oil is warmed up, especially when the weather is cold, as I am sure that Moto Guzzi engineers will confirm. It does not indicate that the oil is in poor condition. The reason that the oil was not able to warm up to operating temperature and burn off this water-based foam (what the dealer characterized as "sludge") is because the bike was ridden 200 feet before it seized. It is also impossible to verify correct oil level when the engine is cold, as it was when I brought it to Munroe Motors. Per the owner's manual: "ENGINE OIL LEVEL MUST BE CHECKED WHEN THE ENGINE IS WARM AND WITH THE DIP-STICK INSERTED BUT NOT SCREWED IN. IF YOU CHECK LEVEL WHEN THE ENGINE IS COLD, OIL LEVEL COULD TEMPORARILY DROP BELOW THE 'MIN' MARK. THIS SHOULD NOT BE CONSIDERED A PROBLEM PROVIDED THAT THE ALARM WARNING LIGHT AND THE ENGINE OIL PRESSURE ICON DISPLAY DO NOT TURN ON SIMULTANEOUSLY."
Again: when I last checked the engine oil (when it was hot, immediately after my last ride before the engine seized) it was in good shape, as would be expected after having been used for only 2000 miles. The engine oil level was above the "min" line on the dipstick when checked, indicating that it was within the specified range. The oil and engine lights
never came on before the engine seized, also pointing to the fact that seizure was not due to incorrect level or condition of the engine oil. The bike remained in my garage after I performed the last oil check, and lost no oil between the last check and the ride when the engine seized (or afterward). The engine also ran perfectly until the moment it seized. Additionally, my V7ii falls squarely in the range of VIN #'s that had missing crankshaft thrust bearings from the factory and have had engines replaced by Piaggio/Moto Guzzi.
I am profoundly disappointed and surprised by Moto Guzzi's decision not to back their product which has so few miles, falls within the known VIN range of engine failures due to missing thrust bearings, and which had all services performed per the service manual's recommendation. I recognized that I brought the bike to the dealer 10 months beyond the warranty period (when the engine seized), but since evidence seems to point to a manufacturing defect rather than an error in required maintenance, I respectfully request that Piaggio reconsider offering some sort of compensation. In the meantime, I have contacted the dealer to arrange for transportation of the bike.
Please let me know who I need to speak with to formally appeal this decision.
Thank you again for your time, and for your help.
Sincerely,
Screwed customer