One problem related to transmission fluid leaking has been reported for the 2004 Toyota Matrix. The most recently reported issues are listed below.
The contact owns a 2004 Toyota Matrix. While driving approximately 65 mph on normal road conditions, the contact downshifted to fourth gear and heard a grinding and squealing noise. The noise occurred without warning. The vehicle was taken to an independent mechanic for diagnostic testing and it was discovered that the gear bearings were worn, which resulted in gear fluid leakage from the seals. The gear fluid was dispensed into the fluid reservoir. The technician recommended replacing the manual transmission and clutch. The vehicle is currently inoperative and has not been repaired. The VIN was unknown. The failure and current mileages were 94,620.