Toyota Repair: Power Steering Problem, octagon toyota, power steering failure

Question
I own a Toyota MR2 2000(X) 1.8 VVti.  It was bought 2nd car from a main dealer in January 2002. The car has now done 29,500 miles. Last week the power steering went and it was taken to Octagon Toyota where i was told that comepletely broken and would cost approx £1000 to repair (parts & labour).  I said that this was unacceptable for a car of this age and low mileage.  Toyota GB have offered to pay a third of the cost - i still think this is unacceptable.  I was told by one of the service department staff at Octagon Toyota that in his opinion it was a manufacturing fault.  As a result of this I have two questions: 1) Do you think it is acceptable to break so soon - i am aware it is out of warranty, but Toyota do not even check the power steering until 60,000 service. And 2) A month after purchasing the car i took it back to the main dealer as the power steering felt odd when it was cold - it's hard to describe but it felt as though it was surging and jagged when you turned the wheel - as though it was struggling.  I was told by the dealer it was because the fluid gets thicker when it's cold and the pump finds it hard.  Is this feasible?  at the time i was so excited about having a new car i didn't query it - now i'm thinking surely these pumps are testing for cold and if this was the case all cars would do this?

Any help or info would be much appreciated.  (Sorry for the essay!!).

Kind regards
Sarah

Answer
Hello Sarah, welcome to my expert page.
This is the first time I have heard of a power steering failure on this year MR2, I can't comment on whether it is a manufacturing fault but this failure is definitely premature, I think you should argue the case again with Toyota GB and ask  them to do a "goodwill warranty repair" because you took it in before with the complaint( at that time was there a repair order made and do you have a copy of it?) that the power steering felt strange and what they told you was a lie, this was, and is not normal power steering behaviour when cold, there was a problem then, what happened is that the power steering fluid gets low and then you feel the jagged action of the steering wheel, there was probably, and still is, a leak in the system.
There is one more thing I can do for you, I need to know exactly what part(s) they say need to be replaced and I will get back to you.