Don't go back to that dealer. he is full of crap. The transfer case is very well sealed up. it shouldn't be leaking anywhere. And if it was , since it only contains about a quart of fluid, it would be empty by now and you would know it.

I'm betting your 4wd mode switch is not working properly. it seems od that the 4wd lights aren't blinking in error mode

start with the easy stuff.

1. check the connector plug for the wires going to the transfer case. Follow your rear driveshaft rom the axle back to the engine. the first thing that it hits is your transfer case. there are a couple of interesting things to see here.
There is a cylinderical sensor with a white gear on it. This is your vehicle speed sensor. leave it alone. it is ok
There is a single wire running straight into the transfer case. this is the wire that controls your clutch solenoid. dont' pull to hard on it but make sure it looks in good shape
There are three wires together running into the transfer case through a 1" round well with a philips screw right underneath the wires. this is your rear driveshaft HALL sensor . I think this is OK. you can check to make sure no fluid is leaking from around it and you might as well take the screw out. you can then pull the sensor out of the transfer case and make sure no metal flakes are stuck to it. also check the o-ring. don't worry. theres no way to put it back in the wrong way and the internal fluid level is below the opening when you pull it out so nothing will pour out. wipe it off then put it back
There is a silver "CAN" hanging off the back of the transfer case.it has a right angle gear on it and bolts to the back of the transfer case this is your shift motor. leave it alone. if you take it off you can shift your transfer case manually with a wrench but the you have to use silocone rv sealant before putting it back
There is a round metal piece "looks sort of like a donut" this is your harmonic balancer. leave it alone.
Underneath the shift motor and harmonic balancer (still on the back of the transfer casae) is the front driveshaft HALL sensor. leave it alone since you would have to do a lot of work to get at it.

All the wires I spoke about run back to a connector right above the shift motor. make sure it is connected good and tight.wiggle it a little if your careful you can pull it apart and check for corrosion. if you take it apart you should get some Di-Electric grease and smear it on the contacts before re-connecting it . PEP boys sells it in a small can, make sure it is di-electric (non conducting).

While you are doing this you should change your transfer case fluid. There are two drain plugs. a 3/8" rachet and 3/8" extension fit into the plugs. make sure you remember how far the are screwed in before you take them out (the transfer case is only about 1/4" thick metal. you don't want to screw the plugs in to far) the higher plug is where you refill from. the lower plug drains. figure out how your going to get the fluid in the higher plug before you start draining. take the top plug out then take the lower plug out. let it drain and then put the lower plug back in. use teflon tape when you put the plugs back in
check the fluid to see if it is burnt or has flakes in it. refill until the fluid starts coming back out the top plug and then put the top plug back in.

This was the first step in diagnosis. now check to see if any 4wd mode works.
I don't think this is going to fix anything but you should be doing this stuff anyway


I think your 4wd mode switch isn't working. I believe the radio panel comes off and you can access the switch with pulling anything else out (except the radio maybe). the switch has 4 connection (i believe) 2 are for a light (this might be the light above the switch) 2 are for the actual switch. the switch uses 3 resitors each position of the switch connects a different resitor. you can take the switch off and hook a ohmmeter up to it to see if you read 3 different values depending on where the switch is. I think the values are 350 ohms, 1.1kohms and 3.9Kohms (it's hard to read the print I have)

You might even want to try substituting these 3 value resitors in one at a time to see if the 4wd turns on for any of them (dont forget to leave your car in nuetral for this


I never took off the switch. I'm only looking at the print and this is what I would do in your case.

If the switch checks out OK then I think your GEM module might be bad.


When you put it in 4wd low do you hear anything move or click under the center console