I have replaced this switch once because of issues with (from what I was told) bad solder joints. It will drop the truck in neutral on it own at times or its hard to get back into 2wd. I am on my second switch and was told once that they go bad and its a poor design.

Anybody have the same issues and is there a better solution than $60 GM part?

I avoid using 4wd because of this but its not fair! I like to off road....

 

you did not tell us how many miles you got on the 2nd switch.
yes, they are infamous for being poorly made, but it should not be dropping your transfer case into neutral all by itself. to put t-case into neutral is the whole procedure, with several buttons to be pressed and such. i think, there's an actuator control on the t-case, that might be the culprit. and yes, esp now, around ice and snow - kick him into that AUTO 4WD, and it plowes like a tank through anything! got to have it fixed!

 

I have 90K on the truck and had about 65K on it when I replaced it the first time. Is there a way to test actuator? Thanks in advance for your help!!

 

I had the same issue on my 03. it turned out to be the transfer case encoder shift motor. the dealer replaced it for $300 including parts.