Note: For ease of reassembly, shift the transfer case to 2HI prior to removing any components.

1. Remove the encoder motor. Refer to Transfer Case Actuator Assembly Replacement.
2. Place the encoder motor on a clean work bench,
3. Remove the 2 screws (2) from the motor cover.
4. Remove the 2 screws (1) from the casting.
5. Remove the cover.
6. Remove and save the shim on the output gear.
7. Remove and discard the orange rubber seal from the cover.



8. Remove the output gear (1).



9. Disassemble the harness connector (1) from the sensor.
10. Remove the sensor from the output shaft using a flat tip screwdriver.

1. Assemble the harness to the NEW sensor with the connector legend "TOP" (1) and the sensor part number facing up.
2. Assemble the output shaft into the sensor, being sure to align the encoder tab with the groove on the shaft.
3. Ensure the encoder is seating properly on the output gear.
4. Place the output shaft/encoder on the casting.
5. Place the grommet harness on the casting slot, the flat area on the grommet will be facing up.



6. With the output gear/encoder assembly in hand, carefully align the casting and output gear timing marks (1).



7. At the same time, be sure to align the encoder phasing post (1) with the phasing slot (2) in the casting and insert the shaft into the bushing.
8. Verify that the output gear and idler are engaged properly.
9. Seat the harness wires on the casting channel.
10. Place the shim on the output shaft gear.
11. Press a NEW seal into the cover.

Caution: Refer to Fastener Caution in the Preface section.




12. Install the cover.
13. Install 2 NEW screws (1) to the casting and tighten the screws to 2 N·m (18 lb in).
14. Install 2 NEW longer screws (2) to the motor cover and tighten the screws to 3 N·m (26 lb in).
15. Install the encoder motor. Refer to Transfer Case Actuator Assembly Replacement.