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When you contacted Atlas, did you include this photo? I would have also thought that they would send you a free replacement wheelset (or at least the plastic axle).
... is this a fluke?
It might be worth asking Atlas if the the plastic geared axle part is common to any of the other locos for which wheelsets are presently in stock. Then you could buy just a $2 wheelset and swap out the broken geared axle with the one from the new wheelset.
Of course, to keep you as a valued customer, Atlas really ought to disassemble an S-2 truck and send you either the geared axle or the entire wheelset free-of-charge.
Bummer, But I am confused ( as I often am). You said it is new. Why not just send it back for a warranty repair or replacement ?