# TOYOTA Hotai Motor Sold a Vehicle with Major Defects, Refused Warranty Coverage, and Applied Pressure on the Consumer
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## Public Statement Regarding Major Mechanical Failures and Warranty Refusal for the TOYOTA GR Yaris
On April 28, 2023, I purchased an imported Toyota GR Yaris from Beidu Motor Nangang Branch, a dealership under the Hotai Motor Group.
The vehicle has currently accumulated approximately 27,000 kilometers. It remains fully within the original factory warranty period. All scheduled maintenance and inspections have been carried out exclusively at authorized Hotai/Toyota service centers. The owner has **never** disassembled, modified, or outsourced any repairs related to the transmission or transfer case.
However, despite normal use and before reaching Toyota’s specified maintenance intervals, the vehicle suffered **multiple major failures involving both the transmission and the transfer case**. Hotai Motor’s subsequent handling of this matter has severely infringed upon consumer rights. This statement is therefore made public to seek attention from the general public and the media.
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## I. Transmission Abnormality Occurred During Warranty Period
In mid-October 2024, I noticed abnormal and clearly unusual noises coming from the transmission and immediately returned the vehicle to an authorized service center for inspection.
In November 2024, the service center stated that:
* The transmission issue **could not be disassembled or repaired locally**
* The case could only be escalated to the head office
* The owner was instructed to **continue driving the vehicle**
Subsequently, in February 2025, after Hotai Motor personnel conducted an on-site inspection, Hotai Motor formally committed to:
* Replacing the transmission with another unit for temporary use
* Sending the original transmission back to Toyota Japan for technical analysis
This decision clearly indicates that **Hotai Motor acknowledged the transmission failure as a warranty-covered issue** at that time.
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## II. Transfer Case Failure Occurred Before Transmission Replacement
Before the transmission replacement was completed, on **March 13, 2025**, while driving on the highway, the following occurred:
* A warning message indicating **“Transfer Case System Overheating”**
* A large amount of white smoke emitted from the rear of the vehicle
* Loud and obvious gear destruction noises immediately followed
The vehicle was urgently towed to Guodu Motor Xinzhuang Service Center.
On **March 20, 2025**, the service center confirmed:
* The transfer case oil seal had ruptured
* This caused severe oil leakage and catastrophic gear damage
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## III. Warranty Refused Based on “Suspected Signs of Disassembly”
What is unacceptable is that Hotai Motor subsequently refused warranty coverage for the transfer case, citing:
* “Suspected signs of disassembly” on the transfer case bolts
* “No maintenance records found”
In response, I raise the following serious objections:
1. **Vehicle mileage below 40,000 km**
The owner’s manual clearly specifies that transmission and transfer case oil replacement is required at 40,000 km. Both failures occurred **before** this interval.
2. **All inspections and repairs were conducted by authorized service centers**
The owner has never disassembled or repaired the transfer case, yet responsibility is inferred based solely on the word “suspected.”
3. **No concrete evidence provided**
Hotai Motor has failed to present any objective evidence proving that the alleged disassembly was caused by the owner.
Assigning fault to the consumer without evidence is a clear violation of fundamental consumer protection principles.
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## IV. Contradictory Warranty Standards and Inconsistent Handling
If the transfer case truly had “suspected human disassembly,” why did Hotai Motor previously agree to warranty coverage and replacement of the transmission?
Hotai Motor later stated:
> “Since the transmission has already been compensated, the transfer case will not be covered.”
This **inconsistent standard and retroactive reversal** severely undermines consumer trust in the brand and its after-sales warranty system.
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## V. Transfer Case Oil Leakage Is a Known and Widespread Issue
I have repeatedly pointed out to Hotai Motor that:
* GR Yaris models in **Japan, Europe, and Taiwan** have documented cases of transfer case oil leakage
* The GR Corolla, which uses the same components, has identical issues
* Toyota has updated the transfer case oil seal assembly
from the old **brown gasket** to a new **black gasket**
(Part No. **36250-42030**)
* International performance manufacturers such as **SCARS73** and **HKS** have released reinforced oil seals and cooling kits to address this issue
If there were no inherent defect in this component, why would both Toyota and third-party manufacturers continuously redesign and improve it?
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## VI. Refusal of Inspection, No Accountability, and Shifting All Risk to the Consumer
I proposed several reasonable solutions, including:
* Public disassembly inspection or third-party technical analysis
* Technical certification proving the oil seal has no defects
* A written agreement stating that if the same failure occurs again, a refund would be issued and the vehicle would be acknowledged as having a major defect
All of these proposals were rejected by Hotai Motor.
Furthermore, Hotai Motor stated that:
* If the owner does not purchase a genuine factory transfer case at their own expense,
the previously promised transmission warranty replacement will also be revoked
This behavior effectively constitutes **coercive tied sales**.
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## VII. Prolonged Negotiations and Pressure on the Consumer
Since **March 25, 2025**, over **eight negotiation meetings** have taken place with no concrete resolution.
During this period, Hotai Motor repeatedly contacted the owner demanding removal of the vehicle and even threatened claims of:
* “Occupation of private property”
* “Unjust enrichment”
These actions caused significant psychological distress to the consumer.
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## VIII. Public Appeal and Demands
I hereby publicly call upon Hotai Motor to:
1. Acknowledge the structural issues of the GR series transfer case
2. Fulfill warranty obligations in accordance with the law
3. Handle consumer disputes using consistent, transparent, and verifiable standards
4. Stop shifting known defects and quality issues onto consumers
This case is not merely a personal dispute—it concerns whether **Taiwanese consumers can genuinely receive the quality assurance and warranty protection promised during the warranty period**.
I will continue to defend my rights and those of other consumers through media exposure, consumer protection mechanisms, and legal action.
---------------------------------------------------------------------
## Additional Information: Known Issues of the GR Yaris (For Public Awareness)
For those considering purchasing or already owning a GR Yaris, the following **globally recognized issues** should be noted:
1. Upper valve retainer design lacks proper locking, potentially causing catastrophic engine failure
2. Water pump leakage; coolant reservoir leakage due to pressure buildup
3. Transmission synchronizer failure; clutch release bearing separation; flywheel play
4. Transfer case oil seal leakage leading to transfer case failure; rear differential overheating causing sudden power loss
5. Steering system overheating resulting in sudden loss of control
6. Turbo oil feed line may fracture due to long-term vibration
7. Right upper engine mount may loosen due to vibration, causing engine sag
8. Front subframe bolts may loosen due to insufficient torque, resulting in abnormal noise
9. Rear battery electrolyte leakage may cause body panel corrosion
10. Insufficient piston pin strength may lead to pin fracture during high-speed crankshaft operation
11. Insufficient bearing clearance may prevent proper oil film formation, leading to overheating and bearing failure
---------------------------------------------------------------------
**Original post link:**
https://www.facebook.com/share/p/14KqodoNrFz/
---------------------------------------------------------------------
## Public Statement Regarding Major Mechanical Failures and Warranty Refusal for the TOYOTA GR Yaris
On April 28, 2023, I purchased an imported Toyota GR Yaris from Beidu Motor Nangang Branch, a dealership under the Hotai Motor Group.
The vehicle has currently accumulated approximately 27,000 kilometers. It remains fully within the original factory warranty period. All scheduled maintenance and inspections have been carried out exclusively at authorized Hotai/Toyota service centers. The owner has **never** disassembled, modified, or outsourced any repairs related to the transmission or transfer case.
However, despite normal use and before reaching Toyota’s specified maintenance intervals, the vehicle suffered **multiple major failures involving both the transmission and the transfer case**. Hotai Motor’s subsequent handling of this matter has severely infringed upon consumer rights. This statement is therefore made public to seek attention from the general public and the media.
---------------------------------------------------------------------
## I. Transmission Abnormality Occurred During Warranty Period
In mid-October 2024, I noticed abnormal and clearly unusual noises coming from the transmission and immediately returned the vehicle to an authorized service center for inspection.
In November 2024, the service center stated that:
* The transmission issue **could not be disassembled or repaired locally**
* The case could only be escalated to the head office
* The owner was instructed to **continue driving the vehicle**
Subsequently, in February 2025, after Hotai Motor personnel conducted an on-site inspection, Hotai Motor formally committed to:
* Replacing the transmission with another unit for temporary use
* Sending the original transmission back to Toyota Japan for technical analysis
This decision clearly indicates that **Hotai Motor acknowledged the transmission failure as a warranty-covered issue** at that time.
---------------------------------------------------------------------
## II. Transfer Case Failure Occurred Before Transmission Replacement
Before the transmission replacement was completed, on **March 13, 2025**, while driving on the highway, the following occurred:
* A warning message indicating **“Transfer Case System Overheating”**
* A large amount of white smoke emitted from the rear of the vehicle
* Loud and obvious gear destruction noises immediately followed
The vehicle was urgently towed to Guodu Motor Xinzhuang Service Center.
On **March 20, 2025**, the service center confirmed:
* The transfer case oil seal had ruptured
* This caused severe oil leakage and catastrophic gear damage
---------------------------------------------------------------------
## III. Warranty Refused Based on “Suspected Signs of Disassembly”
What is unacceptable is that Hotai Motor subsequently refused warranty coverage for the transfer case, citing:
* “Suspected signs of disassembly” on the transfer case bolts
* “No maintenance records found”
In response, I raise the following serious objections:
1. **Vehicle mileage below 40,000 km**
The owner’s manual clearly specifies that transmission and transfer case oil replacement is required at 40,000 km. Both failures occurred **before** this interval.
2. **All inspections and repairs were conducted by authorized service centers**
The owner has never disassembled or repaired the transfer case, yet responsibility is inferred based solely on the word “suspected.”
3. **No concrete evidence provided**
Hotai Motor has failed to present any objective evidence proving that the alleged disassembly was caused by the owner.
Assigning fault to the consumer without evidence is a clear violation of fundamental consumer protection principles.
---------------------------------------------------------------------
## IV. Contradictory Warranty Standards and Inconsistent Handling
If the transfer case truly had “suspected human disassembly,” why did Hotai Motor previously agree to warranty coverage and replacement of the transmission?
Hotai Motor later stated:
> “Since the transmission has already been compensated, the transfer case will not be covered.”
This **inconsistent standard and retroactive reversal** severely undermines consumer trust in the brand and its after-sales warranty system.
---------------------------------------------------------------------
## V. Transfer Case Oil Leakage Is a Known and Widespread Issue
I have repeatedly pointed out to Hotai Motor that:
* GR Yaris models in **Japan, Europe, and Taiwan** have documented cases of transfer case oil leakage
* The GR Corolla, which uses the same components, has identical issues
* Toyota has updated the transfer case oil seal assembly
from the old **brown gasket** to a new **black gasket**
(Part No. **36250-42030**)
* International performance manufacturers such as **SCARS73** and **HKS** have released reinforced oil seals and cooling kits to address this issue
If there were no inherent defect in this component, why would both Toyota and third-party manufacturers continuously redesign and improve it?
---------------------------------------------------------------------
## VI. Refusal of Inspection, No Accountability, and Shifting All Risk to the Consumer
I proposed several reasonable solutions, including:
* Public disassembly inspection or third-party technical analysis
* Technical certification proving the oil seal has no defects
* A written agreement stating that if the same failure occurs again, a refund would be issued and the vehicle would be acknowledged as having a major defect
All of these proposals were rejected by Hotai Motor.
Furthermore, Hotai Motor stated that:
* If the owner does not purchase a genuine factory transfer case at their own expense,
the previously promised transmission warranty replacement will also be revoked
This behavior effectively constitutes **coercive tied sales**.
---------------------------------------------------------------------
## VII. Prolonged Negotiations and Pressure on the Consumer
Since **March 25, 2025**, over **eight negotiation meetings** have taken place with no concrete resolution.
During this period, Hotai Motor repeatedly contacted the owner demanding removal of the vehicle and even threatened claims of:
* “Occupation of private property”
* “Unjust enrichment”
These actions caused significant psychological distress to the consumer.
---------------------------------------------------------------------
## VIII. Public Appeal and Demands
I hereby publicly call upon Hotai Motor to:
1. Acknowledge the structural issues of the GR series transfer case
2. Fulfill warranty obligations in accordance with the law
3. Handle consumer disputes using consistent, transparent, and verifiable standards
4. Stop shifting known defects and quality issues onto consumers
This case is not merely a personal dispute—it concerns whether **Taiwanese consumers can genuinely receive the quality assurance and warranty protection promised during the warranty period**.
I will continue to defend my rights and those of other consumers through media exposure, consumer protection mechanisms, and legal action.
---------------------------------------------------------------------
## Additional Information: Known Issues of the GR Yaris (For Public Awareness)
For those considering purchasing or already owning a GR Yaris, the following **globally recognized issues** should be noted:
1. Upper valve retainer design lacks proper locking, potentially causing catastrophic engine failure
2. Water pump leakage; coolant reservoir leakage due to pressure buildup
3. Transmission synchronizer failure; clutch release bearing separation; flywheel play
4. Transfer case oil seal leakage leading to transfer case failure; rear differential overheating causing sudden power loss
5. Steering system overheating resulting in sudden loss of control
6. Turbo oil feed line may fracture due to long-term vibration
7. Right upper engine mount may loosen due to vibration, causing engine sag
8. Front subframe bolts may loosen due to insufficient torque, resulting in abnormal noise
9. Rear battery electrolyte leakage may cause body panel corrosion
10. Insufficient piston pin strength may lead to pin fracture during high-speed crankshaft operation
11. Insufficient bearing clearance may prevent proper oil film formation, leading to overheating and bearing failure
---------------------------------------------------------------------
**Original post link:**
https://www.facebook.com/share/p/14KqodoNrFz/
Last edited:
