Transfer case started leaking. The mechanic at the dealership said it caused by a metal clamp, and it usually occurred on the diesel models.When they got the new transfer case the clamp the part had redesigned with a larger clamp. When looking up this problem I found a lot of people on pages with the same problem. Why hasn't GMC issued a recall for this ?
It's not just Deisels, it;s pretty much any auto 4 wd push button, I have a 99 silverado. I've changed mine out, another design problem they don;t want to fix !
SOURCE: 2004 GMC Sierra 1500 4wd. Auto transfer case light issue
I have the same problem. It is intermittent and sometimes shows up with service transmission message. To get rid of it just put the truck in park, press the 2 high button and shift into drive while it is still flashing. I will worry about it more when it blows up. You can drive with the vehicle showing the solid neutral and it seems to make no difference. It has to be a wake up problem between the control modules. It only happens on start up.
SOURCE: holes in the transfer case of a 2002 gmc duramax
well there are a few options, depending on the wear of your transfercase you can just replace the rear housing and install new pump clips from gm, jb weld and other bonding agents will not fix the problem but rather prolong it, I just pick up a reman this week for my own truck that was only$1100 great deal compared to junkyards
SOURCE: my security light stays on & won't let my 99 gmc 6.5 diesel sierra start any solutions
Yes, the system is called Passlock, and malfunctions regularly. Go to this link for an explanation of how it works, plus some tricks and tips on how to reset it, or bypass it.
http://vatspasslockpasskeysecurityhelp.yolasite.com/
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