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Steering Fluid Leak



Hi all. I'm new to the list and have a problem I need some help with.

I own a 1993 90 Quattro, still under warranty until 9/8/96. A couple of
weeks ago, I heard a loud moaning noise when maneuvering the car at low
speed. I checked the power steering fluid reservoir and found that it was
nearly empty. The nearest Audi dealer being 75 miles away, I went down to
the local VW dealer and bought three bottles of that rather expensive
power steering fluid ($11 per bottle.) The part number was not *exactly*
the same as the one in my owner's manual (G 002 012 from the VW dealer, G
002 000 in the Audi manual.), but the VW dealer assured me it was the
right stuff for Audis. I filled the reservoir (took more than a bottle and
a half) and the moaning noise went away.

Of course, I figured I had a leak. I didn't see any evidence of fluid
leakage on the hose leading from the reservoir, but tightened the hose
clamp anyway. A couple of days later, I checked the fluid again, and while
it was a tad lower, there was still plenty left. Then, while doing some
tight low speed maneuvering, I saw smoke coming from the right side of the
car and smelled a foul odor. To make a long story short, I discovered that
turning the wheel hard right caused the smoke, and the smoke, of course,
caused the odor. With the engine running and the wheel turned all the way
to the right, I examined the right side of the engine compartment and
could see that the rubber boot on the right side of the steering mechanism
was moist and fluid was slowly dripping from it onto the exhaust pipe
directly underneath (I couldn't see exactly where the fluid was coming
from.) The boot on the left side was dry as a bone.

I called the nearest Audi dealer and they said it's probably the steering
rack. They said it was an expensive part ($900+) and about a four hour
job. They don't stock the part, so they have to examine the car, then
order the part. They won't order the part until they see the car. Since I
live so far away, this likely means that I'll have to drive the car over
there with someone in a chase car, leave it there for several days, then
get a ride over to pick it up. In other words, a major pain. They said
Audi would not reimburse me under the warranty if I had the car fixed by
anyone other than an Audi dealer, even though the nearest one is so far
away.

How did I end up with an Audi when the nearest dealer is so far away?
Well, I bought this car new from the local Honda dealer who told me he
bought it off a bankrupt Audi dealer. I got the car for a *very* good
price and have been extremely happy with it for three years. However,
before agreeing to buy the car, I pointed out that with the nearest Audi
dealer 75 miles away, warranty service would be a major hassle. The dealer
agreed, in writing, that a person would be provided to drive the car over
to the Audi dealer for service, but I would have to pay a fee. The fee
mentioned at the time was "about $35." I thought this was OK, and bought
the car.

I'm embarrassed to say that I did not take the car in for dealer service
until it had 35,000 miles on it. It was just too much hassle to arrange
transporting the car and all. I did have the fluids serviced at regular
intervals at the local Jiffy lube (holy cow, I hope they didn't top off
the steering reservoir with regular fluid...) Anyway, I did take it to the
Audi dealer myself not too long ago and there was nothing wrong other than
a few gaskets and seals to be replaced, some hoses tightened, and a free
wheel alignment (actually, there was a bunch of rodent bedding and some
serious damage to the fuel injection electric wires from mice who had
moved in under the plastic engine cover, but that's another story.)

So, I contacted the Honda dealer and requested a person to drive the car
over to the Audi dealer. They didn't know what I was talking about so I
reminded them about the written deal I had with the salesman. Reluctantly,
they put me in touch with their driver. He balked at the idea that he had
to drive 75 miles with a chase car, go back and get my car later, etc. I
haven't heard the last of it, but I think the Honda dealer is going to
back out. My agreement says that "So-and-so will drive the car to the Audi
dealer for a fee of (blank) for regular service." I think they'll try to
duck out of the commitment based on the phrase "regular service" (it
doesn't say "warranty repairs") or the fact that the fee is blank (they
might just fill in a large enough number to make me go away.)

Sorry for the long-winded preface. Here are my questions:

1.) Does it sound like the steering rack is the culprit and has to be
replaced?

2.) If so, does anyone know the likely cause of the problem? Bad gaskets?
I only have 43,000 miles on the car -- seems early for this kind of
problem. Can I expect more problems like this in the future? It may not be
relevant, but I did have a major blowout on the right front tire at high
speed a few weeks before the problem turned up. It appeared that I picked
up a sharp object that was shot out from the tire like a bullet -- I heard
a loud noise as something hit the underside of the car and the blowout
followed shortly. Possible cause of the fluid leak?

3.) Does the whole rack have to be replaced to fix some faulty gaskets?

4.) Is there any safe way to seal the leak?

5.) Was the Audi dealer telling me the truth about Audi's policy? Anyone
know a phone number where I can get Audi of America to verify this or give
me permission to have the car fixed locally (there's a great local shop
that specializes in foreign cars)?

6.) Should I try to get the Honda dealer to live up to the promise they
made when they sold me the car or should I just give up and take the darn
thing over to the Audi dealer myself? I suppose I can take it over there
and wait while they determine the problem and bring it back when the part
comes in. Only 300 miles of driving...

7.) One complication is that I need the car this week, and may not be able
to leave it overnight until next week. How dangerous is it to drive the
car in this condition? Is the rate of leak likely to increase
significantly? What will happen if all the fluid leaks out while I'm
driving at high speed?

8.) Was the VW steering fluid OK to use?

9.) Does anyone know if there have been any recalls concerning steering on
the 1993 90 Quattro? I recall talking to the Audi dealer about two years
ago when I was going to arrange for a warranty service (I didn't follow
through) and I could swear he said there had been a recall concerning
steering. Now they say there haven't been any such recalls. Anybody know
about this or know how I can find out?

Thanks in advance for any help.

Dick Green