I've had my share of round-n-round issues with service depts before. I came to the conclusion if they decide they am not going to help you, might as well move on cause all you will be doing is hitting your head up against a brick wall. I have tried the "lets work this out nice guy" and still got nowhere. I have tried being assertive with no luck and most definity when you become an upset a$$ all you do is ruin any slim chance of them helping you any further. I too got so upset and spoke to a zone rep at a Jamboree at Dave Smith a few years back. Zone rep said yes he was aware some service dept leave a lot to be desired, but in the end he had minimal impact when dealing with warranty issues between the customer the dealer and DC. Zone rep said DC is more inclined to believe what the service manager has to say, so if the service manager tells DC nothing is wrong and they are "unable to verify" a problem, them DC takes the stance that no problem exists regardless of what the customer has to say. Zone rep has little power in changing DC's mind and OK'ing a warranty repair when service manger is telling DC the customer is blowing smoke about a problem. I asked the zone rep for his card and number so I could contact him in the future (since service depts won't give it to you), and he basically told to not come crying to him when a service manger gives me the run around BS they do so well. Not the answer I wanted to hear, but chalk it up to DC not giving a rats a** about the customer after the sale IMO.
Contacting the zone rep I think is the first step in correctly going up the arbitration "chain of command", presuming you have already called the worthless DC customer service number. Other avenues I've heard of include turning the dealership into the local better business bureau or reporting them to the state attorney generals office. Dealers don't like this and they are more receptive to resolving warranty/repair issues once you demonstrate you are "willing to play ball". I've never checked into the better business bureau or state attorney generals office thing so I don't know if it will work. Heck, I don't even know how to go about trying to contact either. Anyone know??