Transfer Case Disengages In 2h While Slowing Down

ronschul · October 24, 2007

I have an 04 5.3 1500. It has 140,000 miles on it and I drive it 200-300miles a day. 3days ago as I was slowing down to pull into a gas station the transfer case acted like it kicked itself into neutral. The engine would rev without resistance and a grinding noise was coming from the transfer case kind of like when two gears are rubbing on each other but not engaged. I can turn off the engine and cycle the case from 2H to 4H and back to 2H and it resets everything and I can again drive normally until it happens again usually about 1-4hours later. Attempts to press the 4H button before turning off the engine result in a grinding clunk which jars the whole vehicle.

I was told a snap ring might have come off, so I had a reputable shop tear it down, but they could find nothing wrong. I also pulled the 4wd fuse from the panel by the drivers door and it still did it. I've been told the decoder motor is bad or the wiring is bad, but they're all guesses. I don't trust the dealership service manager, who I think is going on Safari with my money, but I've got to fix this thing before it causes more damage....please help......ron

Ranger · October 24, 2007

The encoder doesn't really have anything to do with internal T-case operation, I believe it's what locks the front end...It's possible you may have a bad 4wd switch. Do you have push-button or floor shifter 4x4 controls?

ronschul · October 25, 2007

The encoder doesn't really have anything to do with internal T-case operation, I believe it's what locks the front end...It's possible you may have a bad 4wd switch. Do you have push-button or floor shifter 4x4 controls?

It has the push buttons and it's getting worse. Also I put it in auto 4wd and it works fine does not slip out of gear. Put it back in 2hi and with in 10-15 min it slips out again....ron

dave77 · May 7, 2008

The encoder doesn't really have anything to do with internal T-case operation, I believe it's what locks the front end...It's possible you may have a bad 4wd switch. Do you have push-button or floor shifter 4x4 controls?

It has the push buttons and it's getting worse. Also I put it in auto 4wd and it works fine does not slip out of gear. Put it back in 2hi and with in 10-15 min it slips out again....ron

Did you ever find out what was wrong? Mine also goes into neutral while in 2HI. Auto works in mine also, but no 4LO. No error messages on the dash. I'm thinking of pulling the encoder motor today.

dave77 · May 8, 2008

I ended up replacing the sensor in the encoder motor yesterday. Test drove it and then shifted it several times in the yard with no problems. The sensor is part # 88962315. $105.33 at the local Chevy dealer.

kevin ramsey · December 14, 2009

I ended up replacing the sensor in the encoder motor yesterday. Test drove it and then shifted it several times in the yard with no problems. The sensor is part # 88962315. $105.33 at the local Chevy dealer.

I have the same problem with my manual shift tc. I mean exactly! Someone told me the chain was stretched in the tc. But works fine in 4h. I wonder if the same part is bad in mine since it is a manual and yours is electronic. Where is "the sensor in the encoder motor", located at? Have you had any other problems since then? Just want to spend my money wisely, of course.

Nytemare · December 14, 2009

I ended up replacing the sensor in the encoder motor yesterday. Test drove it and then shifted it several times in the yard with no problems. The sensor is part # 88962315. $105.33 at the local Chevy dealer.

I have the same problem with my manual shift tc. I mean exactly! Someone told me the chain was stretched in the tc. But works fine in 4h. I wonder if the same part is bad in mine since it is a manual and yours is electronic. Where is "the sensor in the encoder motor", located at? Have you had any other problems since then? Just want to spend my money wisely, of course.

You don't have an encoder in your T-case if it has a manual shifter. The encoder motor actuates the linkage that you use to shift into 4wd with the shifter. Basically, it takes the shifter out...but everything else stays the same.

2005bandit · June 21, 2011

I ended up replacing the sensor in the encoder motor yesterday. Test drove it and then shifted it several times in the yard with no problems. The sensor is part # 88962315. $105.33 at the local Chevy dealer.

I have a 05 Silverado and my truck just started doing this last weekend, it would go into neutral when I slowed down at a stop sign. How long did it take you to replace this sensor? and did it fix it?