faulty torque converter? on 2003 Jaguar XKR

My car has 14K miles but is out of warranty because of age. The engine surges at 30 to 40 mph when cold for the first 5 miles. The dealer says I need a new torque converter for $3,000. This was a problem on the early 2003s. Some say to change to thinner transmission fluid. Other people say to take action against Jaguar on a car that cost over $90K with less than 15,000 miles. The dealer sys to just drive it and ignore it. If I could find a new torque converter for $500, I would change it myself. Ern

by in Camarillo, CA on March 27, 2009
Get Your Car Fixed at a RepairPal Certified Shop.
We certify shops based on expertise, quality work, and verified customer reviews
5 answers
ANSWER by , May 26, 2010
Hi there. I have the identical car with 12,000 miles on it. Purchased in San Diego. I have the identical problem and have spent $ 5000.00 at dealer messing with the same problem to no avail. Did you ever get to a solution?? I am getting ready to sue Jaguar over this. Please email me at michaelholley@shaw.ca Please let me know how you made out
ANSWER by , July 31, 2009
Hey Ern, what did you end up doing with this issue? Hopefully Jaguar stepped up and helped out.
ANSWER by , August 30, 2010
you can have your transmission rebuilt and a new torque converter put in for about 2700 dollars at all pro transmission i just had mine done.
ANSWER by , April 07, 2011
Something to consider, these are supposedly "sealed for life" transmissions and the XKRs were running the MBZ 722 series in some early 03s too. There is no "plug" per se but a fitting where fluids are added during power flush and level check, this plug also houses with wiring harness. This plug has a tendency to leak, lowering your fluid to below optimal operation levels AND the plug . It's been known that the harness can wick up the fluid into the comp and you'll get plenty of issues then. I had this happen on my 02 4.0, caught it in time and was a basic $600 including all parts.
ANSWER by , April 07, 2011
I have just ignored the problem. I shift down until the engine warms up and then the problem goes away. The car now has 18,000 miles on it and I just got a "reduced performance light" while driving on the freeway, heard a little pinging when I put the pedal to the floor to get out of the way of traffic. I hope this is not related and is just a gas issue or something.