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2022 GR86 engine failure at 5k miles, RTV found in oil pick up, Toyota refusing to cover under warranty

Los Altos Hills
United States
2022 Toyota GR86
I purchased a new Toyota GR86 in June of 2022, manual transmission, premium package, in white. I bought the extended warranty and the maintenance plan. I Loved it. I paid over the MSRP to get it.

On January 1st (less than six months old), the car with 5,010 miles spun a bearing resulting in a catastrophic engine failure. The vehicle had yet to have its first 7,500-mile service. It was flatbed towed to the nearest Toyota dealer (Toyota of Marin). The initial reports from the dealer, once they removed the oil pan and inspected it, was RIPG (or “rest in place gasket”), also known as RTV silicon, found in the oil pick up. The engine had metal particles in the oil pan, highlighting significant damage to the entire engine.

Fast forward six weeks later, after dozens of calls with the dealer and Toyota, they refuse to cover the failure under warranty. They also refuse to share the report from the Toyota Factory Service Specialist who inspected the car.

They are quoting me $27,500 out-of-pocket to replace the motor.

If you have a 2022 Toyota GR86, beware.