Three problems related to differential unit have been reported for the 2006 Toyota Matrix. The most recently reported issues are listed below.
Bearings in the differential/transmission are making noise. It is a 5-speed manual transmission. This is way too early for transmission failure. Estimated cost of repairs is $2,500.
My rear differential in my 2006 Toyota Matrix xr 4wd was making a whining noise that increased in volume as speed increased. I took it to the dealership and was informed that it was the rear diff. And would cost $2300 to replace. Car has 68k. Powertrain warr. Is 5 yrs. Or 60k. Dealer quoted me price of $2388 to fix?? I said it should not have gone out as I have done every maintenance on this car. They then offered me a measly 10% as a whiner/consolation fee. I then called the "customer center" of Toyota and was eventually told that they would up the "offer" to $600, and that was their final offer. They then called me the next day and told me that it was actually the transmission coupling assy, and that it would cost another $400. Toyota said they would cover the difference of $400 since it was misdiagnosed. I said they should cover all of it since it was clearly defective. They refused. Then I found a Toyota technical service bulletin on the internet describing the exact problem, dated August 23, 2007. So they knew about the problem, and did not notify me. I know this must have happened over a long time, and I could have brought the car in to be inspected, well within its warranty, but Toyota did nothing. I think Toyota is not standing behind their product. $2417 later, Toyota would not acknowledge that this was a defective part, and forced me to pay for it. I shudder to think what might have happened had this part seized up on me at 65 mph in traffic, or on one of our icy mountain roads in the winter.
I purchased a new 2006 Toyota Matrix xr awd on Feb. 2006. I'm going through a 'what seems to be' a common problem with all Matrix's "an ab-normal tire wear problem". The wear/chopping started at around 10k. . . It currently has 17k. . . I've rotated the tires 3 times already!!! the dealer is telling me it's a rear differential problem. . . They're replacing it under warranty. . . Not sure if this will fix the problem??? the tires are all choppy and worn now (at only 17 miles) . . . They must be replaced under warranty!!.