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theres no "touching up" powder coat on the spot. Dont let them hose you. If you settle you lose, if they ship it out to fix... you loose (valuble riding time). eithey way this sucks. I feel for you. remember they will get away with as much as you let them.
Like everyone else said. Claim and document everything. It should still be on warranty.
If you do it yourself, you void any claims.
My leather saddlebags rubbed my swingarm to the metal in '94 and it was waaaay off warranty, so I used Tremclad glossy black in one-stroke spray, let it dry for an hour and did that about a dozen times, using cardboard between the wheel and the swingarm. When I had finished, you couldn't see where the original paint stopped and the tremclad started.
Your frame IS powder coated and it is obviously an adhesion problem. There are several reasons for adhesion problems so I don't want to speculate but there is really only two ways to fix it. The area can be sanded, primed and painted or the bike will have to be stripped down and the frame re-powder coated.
I'd have to agree with an earlier post that the problem is likely to show itself in other places so the best fix is powder coat. It's true that a problem like that is few and far between but it happens. Be rational and professional with the people at the dealership and MoCo if you want it to be fixed to your satisfaction. I can assure you that the hot-headed approach will get you nowhere fast.
It's a warranty issue, period. Do NOT let them try to touch up the frame as it won't last for long. If the powdercoat isn't adhering to the frame, it was obviously a production issue. A new frame is the only remedy.
Just don't take no for an answer.
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