Watchdog calls Toyota's reason for denying transmission repair coverage 'laughable'

A Surrey, British Columbia, woman says Toyota told her her 2021 Toyota Highlander needed a complete transmission replacement just 373 miles (600 kilometers) after its powertrain warranty expired, leaving her with a hefty repair bill.

Here's what to know

As Global BC (@GlobalBC) reported in a video segment, after returning from an August trip to Calgary to drop off her son at university, Dona Wilkie said her dealership told her the SUV needed a new transmission. 

The Surrey resident and longtime Toyota customer first noticed aggressive shifting and a whining sound while driving. Wilkie told the station the problem first showed up when the odometer was just above 60,900 miles (98,000 kilometers), which was still within Toyota's 62,000-mile (100,000-kilometer) powertrain warranty. 

But she later learned she was 373 miles (600 kilometers) over the limit, so the repair wouldn't be covered. That left her with a bill of more than C$13,000 (~$9,295 USD) for a vehicle that cost over C$50,000 (~$35,750) and was "not usable."

"I was shocked," Wilkie recalled to Global BC.

She said her dealership submitted a goodwill request to Toyota Canada, but the automaker denied it, pointing to a lack of service history at a Toyota dealership and no record of transmission fluid service. The outlet said it didn't matter that she had maintenance records from independent shops.

More background

According to Global BC, Toyota Canada had already outlined a similar issue in a February 2021 technical bulletin, saying certain 2021 vehicles equipped with UA80E or UA80F transmissions "may exhibit a loud whining or grinding noise."

The nonprofit Automobile Protection Association said it has logged more than 60 complaints in Canada involving failures of the eight-speed transmission.

It also called Toyota's refusal to help "laughable," telling the station it saw no connection between engine oil-change history and a transmission failure linked to what it described as a known issue.

Wilkie relayed to Global BC that the Highlander remained parked indefinitely while she tried to get answers.

What's being done?

The network reported Toyota Canada agreed to pay for the transmission replacement after Consumer Matters contacted the company about Wilkie's case. 

"This customer's request for an out-of-warranty repair exception was already under review when you contacted us and considering the specifics of her individual situation, Toyota Canada has opted to cover the costs of the customer's repair," the company wrote in a statement.

Wilkie said it happened only after weeks without a response, and she told Global BC she had already filed a small claims court notice before Toyota reversed course.

The Automobile Protection Association is also preparing a letter to Toyota Canada seeking a warranty extension tied to the issue. Meanwhile, Toyota is facing a lawsuit in the United States over the transmission problem, the outlet reported.

Global BC said it also asked Toyota Canada why it denied Wilkie goodwill help despite her service records, but the company did not respond.

She does not expect her vehicle back this week with a transmission replacement, as the rest of the saga plays out in both Canada and the States.

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