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The 4wd on my explorer has quit. I have read that the hubs on these trucks are junk. This could be my problem. Before I go tearing into them I want to know if the hubs are not working, will this keep the lights on the dash from indicating if I am in 4wd but the hubs just aren't hooking up.
I just had a similar problem with my '93. My trouble was the electric 4x4 motor mounted on the transaxel. The tech I talked to in the shop said that 9 times out of 10 that's the trouble. My dash lights didn't work either & for a few months prior the 4x4 high was sporadic and 4x4 low didn't work at all. I changed it myself, easy enough to change just costly.
If their are no lights indicating on the dash then it is more then likely that your stepper motor mounted on the transfer case is sticking and needs to be removed and disassembled and cleaned. You can also test the auto 4WD system by reseting the relay that is located behind the jack access panel...for further instructions refer to http://www.glue.umd.edu/~singletn/exp.html.
This is a very helpful website for the Ford Explorer Maintenance in general.
If the lights are indicating on the dash, then it is probably your front hubs that are at fault. Just remove each front wheel and pull off the hub assembly and check to see if the gear in the hub is worn on the backside. You will have to remove a small external snapring in order to get the gear out for inspection.