I'm having the Transfer case replaced on my 2003 Silverado 2500HD at 140,000 miles. The case is an NP 263 XHD. The XHD stands for "extreme heavy duty" since it is the case they put behind the Duramax with Allison transmission.

There is a obvious lack of information being made to owners of the problems associated this case and several other models. There is a known and common problem with these cases although if you only drive short distances it may take considerable time to show up. I would advise you to get under your truck and carefully inspect your Transfer case for leaks. The problem is the internal fluid pump flange wears a hole through the case. The case is magnesium alloy and very thin. The hole is small and above the normal oil level when the truck is parked. The oil only comes out when traveling. Once the hole developes you may drive for many miles before the oil is lost. If this occurs on a long trip you may ruin your transfer case before you realize your losing oil. This is what happened to me. I'm spending $1850 to get a new one.

There are no recalls although this issue is discussed on the internet at many sites. The mechanic I used told me he sees this very often and has replaced about 25 of these transfer cases with the same problem.

Anyone here have comments on this issue?

 

this is a very common problem. this usually happens around 150,000 miles. There is a updated case spring that is supposed to be better. Who knows if it will last longer, most people will never drive the truck they own to 300,000 miles

 

truck-u did a epasode on this, they have it on youtube on how to fix and what to look for, and a good contact for parts

 

every summer travelers come in with the same problem been around for a while