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Thank you. I strongly suspect dealer didn't spend a lot of time on it. But that is speculation on my part. There are two hoses that run through the top of the firewall centered with the engine. One on the drivers side was ruptured and there was pink liquid on the firewall. Frankly dealer didn't tell me much now that I think about it. So thanks for the heads up.I'm also interested in what failed. Complete failure like that, warping both heads to the point they are complete losses is no small deal. I feel like a broken record, but I don't think I've ever seen that on a 2UZ. Mechanics (Dealers included) are notorious for absolutely wrong diagnosis on these motors.
I've got a lot of experience with aluminum head overheats and associated problems. Not 2UZ, but inline 6 in the Supra world. Usually, the dealer will not offer any kind of machining. It's either perfect, or scrap. No in between. From an engine builder's perspective that's incredibly dumb and lazy.
A good shop that handles engine builds may be able to take a look at it and determine the heads can be straightened or just machined flat again.
$8800 for a new engine is insanity. That's like a fresh block, heads and associated hardware. $5k is still a healthy profit for a basic shop. Somebody that knows what they're doing could probably do it for $3k and still make some good profit if the heads are salvageable.
I'd love to know if the dealer even actually measured the heads or if they just kept the engine together, did some basic inspection and extrapolated that it may have serious problems and quoted you an entire new engine because they didn't want to bother actually figuring out what's wrong.
As suggested above called ACC for a quote. They are looking into it, and will get back to me so fingers crossed. I know they are a great shop.