B.C. Toyota owner battles automaker over $13K bill after transmission fails

When Dona Wilkie drove her 2021 Toyota Highlander on a recent trip to Calgary this past August to drop off her son at university, she expected a smooth ride.

Instead, the B.C. resident says she experienced aggressive gear changes and a strange noise coming from her vehicle. “As I was pressing the accelerator, it would whine. At first, quite low. It was like a humming and then it got louder as the trip went on,” said Wilkie.

Wilkie says she contacted her Toyota dealership as soon as she arrived home, only to receive shocking news.

Her Highlander, which she had purchased brand new, needed a new transmission. “I was shocked,” said Wilkie.

Making matters worse, Wilkie says she was informed by the dealership that she was 600 kilometres over the 100,000 kilometres powertrain warranty and she’d have to pay for the transmission out of pocket.

Wilkie argued the transmission issue surfaced while her warranty was still active. “I have the oil change receipt showing 98,278km before I left for Calgary. The whining with aggressive shifting started at approximately 98,500 km,” said Wilkie.

Still, Wilkie was hit with a bill of $13,586.88 for a transmission replacement.

“Where am I going to get that money? I can’t afford that,” Wilkie told Consumer Matters.

Wilkie says her dealership reached out to Toyota Canada to see if she would qualify for a goodwill request to cover the cost, but was denied by the automaker because she had no servicing history at any Toyota dealership and no previous records of transmission fluid service.

Wilkie says she was stunned since she has been diligent with her vehicle and has all her independent service records to prove it. “It’s absolutely ridiculous. Absolutely ridiculous,” said Wilkie.

The non-profit consumer advocacy group, the Automobile Protection Association, says there is no connection between Wilkie’s transmission failing and her not doing oil changes at a Toyota dealership.

“That kind of excuse is laughable because you can’t make a connection between oil changes of the engine and transmission failure for a known problem. Literally, dozens of these transmissions are failing in Canada,” said George Iny, director of the non-profit advocacy group the Automobile Protection Association (APA).

“It’s one of the things carmakers do to blow off their customers,” he added.

In February 2021, Toyota Canada issued a technical service bulletin for some 2021 Highlander, Camry, and Avalon vehicles equipped with UA80E or UA80F transmissions which may exhibit a loud whining or grinding noise.

Iny says the APA has received over 60 complaints for failures of the 8-speed transmission, affecting the Highlander primarily.

He says the APA is in the process of preparing a letter to Toyota Canada asking for a warranty extension. “We’d like to see an extended warranty for this, really lifetime coverage for a transmission of this nature,” said Iny.

Consumer Matters reached out to Toyota Canada about Wilkie’s case. She says she received a call from the automaker the next day telling her it would cover the cost of the transmission.

Toyota Canada stated in part to Consumer Matters:

“…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.”

Global BC also asked Toyota Canada why Wilkie was denied the “goodwill request” despite having proof of all her service records, but never received a response.

Wilkie says prior to Consumer Matters getting involved, she wasn’t getting anywhere with Toyota Canada.

“I was waiting weeks to get a response. I even went to the extent of filing a small claims notice, and it wasn’t until Consumer Matters reached out that they reached out to me,” said Wilkie.

Wilkie has since received a loaner vehicle and is expecting a transmission replacement by the end of the week.