Thanks for your comments, Dlipford, but I am going to see this thing through and keep the car. I do not think that any damage was done. I live about a mile from where I work. By the time the warning light came on, I was about five city blocks from home. I limped it home at less than 25 mph and shut it off. It was towed/trailered to the dealership where it was parked inside. The dealership then changed the oil a number of times in succession.
I don't really know how the condensation got there. I don't think anyone sabotaged my car by putting water in the crankcase. When could that have even happened? When it was built in Japan? I hear that the Japanese workers are pretty darned good and loyal. At the dealership where I bought it? I doubt that, although I wasn't there to make friends when I was negotiating the deal. When I was younger and going to grad school in Madison, I worked F&I at a car dealership, so I know the whole car-purchase routine. By the end of my negotiating I'm sure that my salesman wasn't getting the "high gross" salesman award for that month. He was happy to see me leave.....but I still do not think that he would have sabotaged my Corolla.
I actually think the condensation was the result of a number of things -- the long boat-trip from Japan to our coast and then being trailered to a midwestern dealership where it probably sat for a while. Most folks don't want to even look at a small car with a manual transmission. And then, my short commutes to and from work in brutal below zero Northern Wisconsin weather, combined with not being garaged and parked outside. All may have contributed to stale oil and opportunities for condensation build-up. And did I mention that 0w16 oil is very thin.....thinner than water.
This is my first Toyota, and I like the car. I've owned Chevys and Fords and Hondas. I like the looks of this car. It's certainly no speed demon, but with the 6 speed, it's peppy. I do not hear any obvious engine noise.....it's quiet and tight. It's not burning oil. The coolant level is fine -- never noticed any drop and never had to add. All systems go. Again, I don't think any damage was done.
I'm a bit of a fanatic. I've changed the oil a number of times to keep an eye on it, and I only have over 5000 miles on the car. Some may say that is expensive, but c'mon.....I value my time more than the cost of the filter and oil.....and I want it done by me.....and done right. And as I gain confidence that everything is ok, I will back off my oil change obsession.
In the grand scheme of things, I still have two years left on the manufacturer's warranty.....and this thread is a testament to my car's history. Part of this blogging is about seeing if anyone else has had similar issues with the new engine in cold northern climes. But hey, how many people change their own oil these days -- to see what the drained oil even looks like? Most aren't paying close attention.
So....stay tuned. If anything happens to my car, I will check in. And I will continue to watch this blog to see if anyone else has a similar issue with their Corolla and/or the new thinner-than-water oil....0w16. It should be an interesting ride. As my mom used to say, "Time will tell, Johnny."