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I have a 86 f-150 4x4 302efi aod tranny. Here is what is happening I first get in the truck and all is well speedometer reads correct,further I drive it needle goes down an enentually to zero. After truck sits a few hours it is fine this also affects my cruise control from working properly. It has a cable that turns in the speedometer in the dash and also has a sensor with 2 wires going to it. I changed my truck to a 4x4 and used a donor tranny and transfer case I am guessing it is in the transmission some how cause it did not do this with the other 2 wheel drive transmission. I changed out the whole cable out of the other truck cause they are longer and you have to change it to make it reach. Any ideas as to what is causing this and how to test parts to see what is wrong. thanks for the help scott dove
I'm not sure if this applies to your vehicle; but on a 1981 F250 4x4, after I rebuilt BW1345 transfer case, I had same symptom. Apparently the speedometer gear on output shaft is held in place by the yoke. The nut had to be torqued to 150 foot pounds or it slips. Found this out after replacing cable and swapping cruise parts and speedometer head without change.
My 81 4x4 acted the same way. Turned out the drive gear on the output shaft was worn down. It would worked until it heated up. Ordered a new gear from a tranny shop in Vegas. Easy to replace.