OK, after many calls and emails, HDMC has decided that they will NOT replace the cases or the engine but will only offer "touch up paint process". I have copied the paint process they are recommending below. With over 75% of the engine cases now affected, I don't see anything good coming out of this. Nor does the dealer. They do not want to go down the touch up path. They know that the exposed metal on the cases has started to oxidize and will forever be a problem that they will have to deal with.
Dealer is exploring alternative courses of action but I don't have high hopes. Dealer is sympathetic and helpful but appears to have limited options. I guess the good news here is that HDMC has acknowledged it to be a warranty issue. The bad news is that it won't get repaired anywhere near the level that should be expected.
Bottom line - DON'T spend the extra $$ for a CVO. The quality of workmanship, at least in this key area, is less than a non-CVO. The quality of customer service is also much lower than I expected. A complete waste of money and a total pain in the a$$.
Email from HDMC Tech Service to Dealer:
Tim,
I've had the file reveiwed per your last email. At this time I've attached the paint repair pdf file to help make repair to the cases, as it's our right to make repair vs replace per the warranty guidlines.
Tech Svc
Repair Process from HDMC:
How to Repair Case Paint
Damaged crankcase or transmission paint may leave a bare spot of aluminum that ruins the overall looks of the powertrain. At the Motor Company’s 2001 New Model Announcement the Customer Service department demonstrated a simple procedure for repairing case paint in the field. For those of you who missed this valuable demonstration, this “How To” article is provided.
Tools & Supplies
You’ll need some basic tools to complete this repair procedure.
• Scraper
• 100 & 180 grit sandpaper
• Harley-Davidson Texture Black paint (P/N 98606-BF), Silver Bead Blast paint (P/N 98606-BY), Granite High Temp (P/N 98606CTN – ’08-later CVO) or Medium Gray High Temp (P/N 98606CPM – 1200N)
• Newspaper
• Heat gun
Step 1
Scrape off any loose paint from the damaged area
Step 2
Sand the aluminum with 100-grit sandpaper and feather the edge of the paint with 180-grit sandpaper
Step 3
Create a funnel with a newspaper to direct the lightest possible spray of the appropriate paint to the damaged area. (Note: Remember to paint in a properly ventilated area.)
Step 4
Use a heat gun to dry, not bake the paint. Repeat steps 3 and 4 several times to create a seamless repair. (Note: Please follow instructions
and warnings for heat gun use.)