DEFINITION: Loss of the transfer case drive torque during deceleration, acceleration or under load.

Review the Symptoms - Transfer Case and perform the necessary inspections.

Melted high/low range shift fork pads

Replace the high/low range shift fork pads or other damaged components. Refer to Transfer Case Disassemble and Transfer Case Assemble in Transfer Case - NVG 263-NP1 Unit Repair.

Faulty high/low range shift fork

1. Inspect the high/low range shift fork for being damaged. Refer to Transfer Case Cleaning and Inspection in Transfer Case - NVG 263-NP1 Unit Repair.
2. Replace the shift fork if faulty. Refer to Transfer Case Disassemble and Transfer Case Assemble in Transfer Case - NVG 263-NP1 Unit Repair.

Faulty high speed teeth on the range sleeve

1. Inspect for the following conditions:

•	The input gear high speed engagement teeth for wear or damage

•	The engagement teeth on the range sleeve for wear or damage

•	Refer to Transfer Case Cleaning and Inspection in Transfer Case - NVG 263-NP1 Unit Repair.

2. Replace the range sleeve if the teeth are faulty. Refer to Transfer Case Disassemble and Transfer Case Assemble in Transfer Case - NVG 263-NP1 Unit Repair.
3. Replace the input shaft if the input gear engagement teeth are faulty. Refer to Transfer Case Disassemble and Transfer Case Assemble in Transfer Case - NVG 263-NP1 Unit Repair.

High/low range shift fork bushing and springs

1. Inspect the high/low range shift fork springs for being faulty.
2. Inspect the range fork shaft bushing for wear.

Refer to Transfer Case Cleaning and Inspection in Transfer Case - NVG 263-NP1 Unit Repair.

3. Replace the high/low range shift fork if the springs or bushings are faulty. Refer to Transfer Case Assemble in Transfer Case - NVG 263-NP1 Unit Repair.

High/low planetary carrier

1. Inspect the high/low planetary carrier for the following conditions:

•	Low speed engagement teeth worn or damaged

•	Cracked carrier housing

•	Pinion gear worn or out of position

•	Pinion gears broken or damaged teeth

•	Pinion gears seized

•	Refer to Transfer Case Cleaning and Inspection in Transfer Case - NVG 263-NP1 Unit Repair.

2. Replace the high/low planetary carrier if any of the above conditions are found. Refer to Transfer Case Disassemble and Transfer Case Assemble in Transfer Case - NVG 263-NP1 Unit Repair.

2/4 Wheel drive synchronizer gear

1. Inspect the 2/4 wheel drive synchronizer gear for worn engagement teeth.
2. Replace the synchronizer gear if faulty. Refer to Transfer Case Assemble in Transfer Case - NVG 263-NP1 Unit Repair.