Our customer picked up a "rebuilt" transmission/transfer case from a compnay that sells low maileage import from Japan used engines and transmissions. The company supplying the transmissions is middlemanning them from some other shop. We have had two of these transmissions fail in about 300 miles each. The first locked up solid when placed in four low. The second slipped in all high ranges but drove in four low. The builder says both transmissions failed the same way and it is likely "a driveline problem causing the failure" They don't want to send a third transmission. The failure is the bushing in the ID of the transfer case front support. Considering how deep inside the unit this bushing is it seems highly unlikely that a driveline could cause this, maybe even laughable. The bushing supports the output shaft coming out of the transmission on the ID and the support shaft supports the T-case direct drum on the outside. Yes the cooler was flushed and we physically checked the flow, there is plenty of oil returning to the transmission from the cooler. Have any of you seen repeat failure of this bushing and what was your cause? Thanks.
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Problem
The transfer case front support bushing repeatedly fails in about 300 miles.