Engine Grinding Noise problems of the 2000 Chrysler Concorde

I bought my car brand new from the Dodge/Chrysler dealership. I was driving when I heard a ticking coming from the engine, I used my cellphone to call my mechanic who stated that it was probably my timing chain but that if it's just ticking it's not imminent danger of breaking. I arrived to work and upon leaving work, I went to start the car and it would not start. It made a grinding sound, I saw smoke come from under the hood. I called a tow truck company and had the car towed to my mechanic. My mechanic stated that the engine was blown and would cost $6000. 00 to replace it. I had the car towed home ( 2 towing fees at this point at $90. 00 each). I called a mechanic that specializes in intrepid/concorde repairs and he advised that I should tow the car to him as it might not be completely blown. Another towing fee ($90. 00) and another mechanics opinion, yes the engine was completely blown and this mechanic stated the reason for failure was oil sludge. I asked what I could have done to prevent that from happening and he stated that there was nothing I could do, it's a known defect in that particular engine and that if I were to have it repaired, it was his advice to not put a 2. 7l engine back in, but rather a 3. 2 or 3. 5l engine in as they did not have the defect of the 2. 7l. I now have a paper weight in my driveway as I do not have the funds to repair the vehicle. I had to buy another car and now have a car payment to a car that I don't even really like much. I would like to know why I was sold a vehicle with a known engine defect and why Chrysler won't do anything about it.