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Ford came out with a new updated axle tube late in 1997 to cure the problem. They relocated the vent tube. The part number for it is F75Z-4K206-AA and it takes 2-3 hours to replace.
Additionally, a later model Expedition with the improved vent tube may experience a similar problem if the front differential was overfilled. Ford recommends a maximum fill level of a fraction of an inch below the bottom of the fill plug hole. If you fill the differential all the way up to the bottom of the fill plug hole, thermal expansion of the fluid during driving may force some fluid out of the hose. Been there.
Ford came out with a new updated axle tube late in 1997 to cure the problem. They relocated the vent tube. The part number for it is F75Z-4K206-AA and it takes 2-3 hours to replace.
Do you know if Ford may have done a courtesy replacement or voluntary recall?
Yes, I had the same front axle fluid leak in my 97 Expy where the fluid, bit by bit, gets pushed out of the vent tube, makes a mess, and even worse will leave your front axle with less than half the fluid in it after a while. Yes, Ford makes an updated axle tube but the cost is outrageous, and if you have to pay the dealer to do the work - God help you!
So here's what you do. Go to AP racing (web site) and look for 'Remote plastic reservoir 112009'. Buy this remote fluid reservoir. Mount it in front of the windshield washer fluid tank. There's a flat spot on the sheet metal behind the headlight where you can drill the hole for the bracket bolt. You'll have to remove the washer fluid tank. Use a stainless bolt and nut to secure the bracket and seal the hole with paint or sillicone - you don't need any MORE rust on this truck! The reservoir will sit pretty straight upright, test fit it before you drill. You'll need a couple of feet of 5/16 ID tubing and and a tube coupler. The axle vent tube ID is smaller than 5/16, so the coupler will need two different sized ends. I called Eldon James corp (easy find on the web) and got FREE samples of couplers which did the trick. Reroute the axle vent tube up over the frame and connect it to the tube from the remote reservoir.
Now the axle can push out all the gear oil it wants and it'll just drain right back in. Problem solved. I did this two years ago and it's worked great ever since. Any questions, post a reply and I'll be glad to help. Gotta fight these stupid design problems and the extremely high cost of Ford parts and service!
To ParisDakar: That is a great idea! I have the same axle vent tube leak, and it drives me crazy. Gear oil on my driveway and that terrible smell. After looking under my hood, I'm not sure where the reservoir could be attached - there just isn't much room there. I'm guessing you don't have the load leveling air compressor behind the headlight? Would you be willing to post a picture of your solution?