Transmission Shudder Problems of Audi S4

Experienced a grinding noise and vibration in the transmission while accelerating onto highway from a stop, shifting from 1st to 2nd gear at approx. 4500 rpm. After this incident, the transmisison grinded when shifting from 1st to 2nd gear all the time above 3500 rpm. I contacted the dealer and had to wait a week for them to see my car. They kept the car for a day to "diagnose the problem. " they told me that 2nd gear was "shot" due to "shifting at high rpms" or from "hard shifting" and that the transmission needed to be rebuilt. I said that this was ridiculous and that I wanted a new transmission. They said that Audi would only authorize them to rebuild my unit. They also informed me that if this happened again, I would have to pay for the repairs myself and that I would no longer be covered under warranty. It disturbs me how a car manufacturer's transmission could not hold up to the power output of the engine and that the car should not be shifted "high" or "hard". When the repairs are completed, must I then baby this performance automobile and fear shifting above 3500 rpm (half of the engine's redline rpm)? also, I cannot understand how my warranty will not cover a component if it breaks twice. To me, that sounds like a defect. I am now waiting for the dealer to contact me when the necessary parts arrive.

See all problems of the 2000 Audi S4 🔎.