Toyota Repair: new car warranty, toyota pasong tamo, new car warranty

Question
Good Day!

My boyfriend's family purchased a new altis.  The unit was purchased on Jan. 09 2006. We noticed oil spill within the first month. We brought this to the attention of the dealer where the unit was purchased. The service center diagnosed it as malfunctions/errors in the crankshaft.  This has been attributed to factory defect. The unit was retained by the service center from Feb. 14 - Mar. 04, 2006.  Since this is a MAJOR defect, a replacement was requested.

We were informed by the branch manager that it is their policy not to replace the unit. The warranty is limited to the replacement of the defective part even if it is a vital component.  Is this true?

Last June 24, 2006, the aircon suddenly malfunctioned.  We immediately brought this to the attention of the Service Center. This too was diagnosed as a factory defect.

Once again we made a request to replace the unit.  Once again the manager told us it was against company policy.    

Since this both malfunctions are attributed to factory defect and the first malfunction is a major car component.  I'd like to know if Toyota really limits its warranty to part replacement or is it just the manager's/dealers sentiments.

What is the procedure for requesting a replacement vehicle?

The service center and dealer is TOYOTA PASONG TAMO, Makati, Philippines.

Thank you.

Answer
In general, Toyota's warranty policy is to repair the problem that a customer is having by whatever options there are, it is mainly up to the dealer to determine which course of action needs to be taken to repair the problem, as long as the problem is fixed.
Since you don't provide a detailed description of what the problems actually are my ability to be more specific are limited.
The first thing they should do is to give the dealer the opportunity to repair the problems the car is having, it's their job to do that and the customer can't make demands as to what needs to be replaced under warranty, it is their job to diagnose and repair, again, as long as their repair fixes the problem.
I only know what the requirements for asking for a replacement vehicle are in the US, which by the way is a long and involved process.