Was having transfer case (263HD) problems on '01 GMC 2500HD 4X4 when we had 150,000 miles on truck. Came to find out that the GMC shop said that a spring had worn a hole thru the transfer case, and needed to be replaced. Which of course we did replace it.
Now we have 209,000 miles on the truck, and the same thing has occurred again 2 years later. So this time we decided to try and fix it ourselves, and bought a used case off an '04 GMC 2500HD 4x4 wrecked truck. Got to looking at it, and it also had the exact same problem. We have been trying to find a fix for this problem, and came across a website called riversidegear.com that had an after market part for this problem.
I think GM needs to have a recall on their transfer cases for this problem. It costs way too much for customers to have to concern themselves with this problem.
Would you buy another car from this manufacturer? Yes
Review Date: 25th August, 2010