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I have a 2005 F250 Crewcab 4x4 Diesel and the speedometer dies in 4x4 low range. The mechanic has been troubleshooting the problem but he has yet to find a cure. To date, he has verified a good speed signal from the VSS and he has replaced the cluster and the PCM. He is still looking....
I cannot believe that I have the only 2005 truck out there with this problem. If you have time, see if you can make yours die too. I reproduce the problem by driving in 4x4 low over a rough grassy field. I vary the speed between about 2 and 10 mph. As I am driving along, I occasionally cut the wheels left and right ( I think that wheel slip plays into this somehow ). Usually within about 10 or 15 minutes, the speedometer will stop working and the needle will drop below 0. After that, I put the truck in 2x2 high and drive almost 6 miles down the highway at 70 mph before the speedo comes back to life. The other way to reset the speedo is to turn the ignition off and then on again.
I first found this problem when driving in 4x4 low out of a woods with a load of firewood in the bed. I think the key is to be in a situation where there is wheel slip but not alot of drag as sand or soft dirt would introduce.
I am VERY curious to see if anyone else can make this happen. I imagine that this problem exists in other trucks and that it is not limited only to 2005.
Mine was sporadic like yours but it was all the time. I could be running 70 and it would read 25 and so on. After a reflash, the dealer installed a new instrument cluster and problem was solved. This has been a common problem with the 05-06's
I think that my speedo might have a slightly different issue. The gauge actually dies and drops below 0. It then stays there and doesn't move. Meanwhile, the rest of the gauges are just fine. They did reflash and replace the cluster but the problem is still there. The mechanic has been tracing the speed signal through the system and this has become a process of elimination. He has replaced the cluster and the PCM and is now trying to decide what to replace next.