Iron filings in Auto Transmission Fluid

I recently experienced that the gears shifted down automatically in my 2.5 Subaru Outback (automatic transmision) - this happened briefly on 3 occassions when the engine was not yet warm but thereafter the problem seemed to go away. I asked the agent to check the issue and his report back to me was to say that the presence of minute iron filings in the gearbox fluid which became apparent on draining the box indicates that the gearbox is badly damaged, that the iron filings cause the gearing down and other such problems and that the cost to repair or replace is an exorbitat figure. He suggests that we take out the gearbox and they will then be able to assess what the extent of the damage is.

Please advise on whether the presence of iron filings is in fact "terminal" and a major problem - I would guess that there would not be enough filings to melt into an object the size of a paper clip. HELP!

year of car...5EAT right?

more description of shifting...?

the 5EAT will shift hard or a little slower when cold....

The iron filings may be normal wear...have them show you the filings...just a bit on the magnet is ok...more then that and you have issues...

Hi Focus - thanks for the response.

It is a 2004 Outback imported from Japan.

I am not sure if it is 5EAT - where do I find this out?

4 speeds or five?

I have a USDM '05 Legacy and it has the 5EAT....button shifted from the wheel. You might have the 4EAT...

Start with a second oil change and check if you have more metal. That is never wrong.

And if you don't change the oil yourself you can't really check the metal filings that have been found. Every gearbox collect some metal particles on magnets. And even then - if you can feel the particles it means that they are big, but if you can't feel them then there is no problem.

The gearbox behavior may be because the oil is getting a bit aged. If there is a filter - change that too.