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If you press the overdrive button you are turning the OD off not on. I think you may think you need to turn it on, but that is not the case it is fully automatic and the switch is provided for situations like towing where the OD gear puts undue strain on the engine and transmission.
Check the Fuse for the OD function, this is cab fuse panel fuse #29, 5A. If This fuse is blown, chances are the wires at the end of the shift lever are chaffed and causing the problem. This happens some times ( can't say why ), but it is simple enough to check and repair the wires if the insulation is chaffed.
The OD off switch is powered by the cab fuse panel, Fuse #29 ( 5A ). If this fuse is blown, could be chaffed wires at the base of the gear shift lever, where they turn out of the chrome tube( behind the plastic cover ). Without this fuse working, the PCM cannot be signaled to take the truck out of OD, so it could just be the fuse causing the issue. Please add a comment on what you find on the fuse.
check gearbox oil level remove gear lever switch check feed to switch with meter or test lamp no feed check fuse if ok put 2 wires together car in 4th gear ignition on should hear click from overdrive solenoied if ok fit new switch if not check wires from lever to gearbox for breaks think you might find problem here if not check inhibitor switch and then solenoid hope this helps you
Remove the shroud around the steering column and shifter and look closly at the wires coming out of the shifter at the pivot of the shifter, if its not to bad you can tapeit and reposition it and be good to go.
Problem Solved Look No Longer. Overdrive switch fuse blown, auto door locks not working, fuse after fuse after fuse, chasing wires grrrr. Remove the steering column cover (3 screws from the bottom) opens like a **** shell. Your switch is located on the shift lever, the wire for the switch is routed through the handle and comes out where the shift lever mounts to the column. Look very closely at the wire in this area. Most likely rubbed through. MR