Steering Rack And Pinion problems of the 2010 Volkswagen CC

After purchasing vehicle from dealership, I noticed an audible whirring sound coming from the steering system. The vehicle was at a standstill and can be heard when turning wheel to left or right from lock to lock. At first it was a faint whirring sound as if the vehicle was low on power steering fluid. However, the system is electro-mechanical. No hydraulic pumps. The sound has gotten progressively worse and the whirring sound is noticeably more audible. Upon taking it to the vw dealership, service technician says that the entire rack/pinion system has to be replaced because it is defective. Vehicle is less than 40k miles. Service tech says that this is not covered under any warranty. I have found other incidents of this make/model having the same issues, where some systems have completely failed within the first 10k miles. This is a safety issue as there may not be any warning if the system completely fails.