Problems with 2004 Porsche 911 ENGINE AND ENGINE COOLING

Traveling at a speed of 30 miles per hour at a low rpm, i heard a loud grinding noise underneath the car. initially i thought road debris was caught underneath the car and i was dragging it along while driving. i quickly turned the car to the right off the road and turned the motor off. underneath the vehicle i noticed all of the engine's oil spewing out from the bottom of the engine. i contacted my insurance company and arranged for a tow vehicle. i thought an object struck the undercarriage of my car. the car was inspected by my insurance company and determined to be a complete engine failure. no evidence of a road hazard perforating the engine was seen. since i filed this letter i have learned that my engine suffered an intermediate shaft failure. this is a defect in the m96 porsche engines (1999-2009). this defect occurs in water cooled porsche engines. porsche motor company denies responsibility in these vehicles but recognizes that engine failure do occur. i have accurate records with the cost of the repair. how can an automobile company recognize that a defect exists but will not issue or be responsible for repairs? thank you for your help. updated 09/12/11

Driving on freeway when heard a weird noise from the back of the car and a message in red came up on the instrument cluster, lost power to engine, pulled over and oil leaking from engine. engine completely destroyed due to ims failure. engine was replaced with re-manufactured engine by dealer. *kb