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I work in a Seating Factory that makes seats for the Ford Edge, Lincoln MKX, & Ford Flex... The Corolla seats are most likely made by a supplier and those head rests are probably made by a supplier to the seating plant. and the stitching is probably done at the fabric manufacturing warehouse and comes pre-stitched.
The quality issue isn't at Toyota, but is more based towards the seating company. We have a supplier that assembles the head rests, and then they ship it to us ready to be installed.
Tell your dealer to tell Cambridge to tell their supplier to fix the issue, or send you quality head rests.
Long story short... Toyota probably doesn't make the head rests let alone the seats. They just install the pre-assembled seats into the car on the assembly line.
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2009 Corolla XRS
2006 Matrix XR
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