4WD indicator lights shows Neutral
- Thread starter Red Rider
- Start date
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rockola1971
Full Access Member
SHift motor encoder (Commutator) is dirty and the TCCM is lost and doesnt know what gear the Tcase is in. Sometimes just screwing around with it in the driveway pushing 4Hi or 2wd will get a successful shift and position feedback while cleaning out the dirty spot but eventually it will keep coming back and eventually stay. The position sensor can be replaced on the encoder shift motor for the Tcase.
Replacing the whole encoder motor isn't very technical (no programming), just removal of the front propshaft from the transfer case end to get it out of the way. The mounting bolts for the encoder motor can be a bit long, so be prepared to ratchet on them for a while. Plenty of YouTube videos on that replacement procedure.
Fixing the existing encoder motor requires removal from the transfer case, and some disassembly to replace the commutator. Then reverse for installation.
Personally I'd buy a new encoder motor and a new commutator ring. Replace the encoder motor to get you on your way, then take your time to replace the commutator in your old encoder motor. Then you have a spare.
Fixing the existing encoder motor requires removal from the transfer case, and some disassembly to replace the commutator. Then reverse for installation.
Personally I'd buy a new encoder motor and a new commutator ring. Replace the encoder motor to get you on your way, then take your time to replace the commutator in your old encoder motor. Then you have a spare.
If it's anything like mine was, it'll be a bit bipolar, and mess up from time to time. Sometimes an ignition cycle fixed the mode light, but other times not.
Below is a video showing how it's done on yours. A couple of tips:
1. Chock the wheels and set the parking brake, or have it on 4 jackstands.
2. No need to fully remove the front propshaft; you should be able to swing the end out of your way once the end is out of the transfer case (TC). Up to you whether you take it all the way out or not.
3. A new encoder motor (EM) will be clocked to the transfer case's neutral position (note the plastic retainer that is to be discarded when you install it). Do yourself a favor and don't power up the EM and try to move its position before mounting it to the TC. Do your best to put the TC in neutral using the dash switch. If you can't get the TC into true neutral, after you remove the EM you'll be able to turn the TC's splined shaft to the correct position (neutral) with pliers or channel locks. While doing that you may need to move the rear driveshaft back and forth a bit to make it easier, or not.
4. Reuse the black plastic gasket/spacer if it's in good shape. No sealer required.
5. Be sure to fasten the pigtail connector to the bracket up in the driveshaft tunnel. We've seen those wires get caught in the driveshaft and the results are not pretty.
Hope that helps.
Below is a video showing how it's done on yours. A couple of tips:
1. Chock the wheels and set the parking brake, or have it on 4 jackstands.
2. No need to fully remove the front propshaft; you should be able to swing the end out of your way once the end is out of the transfer case (TC). Up to you whether you take it all the way out or not.
3. A new encoder motor (EM) will be clocked to the transfer case's neutral position (note the plastic retainer that is to be discarded when you install it). Do yourself a favor and don't power up the EM and try to move its position before mounting it to the TC. Do your best to put the TC in neutral using the dash switch. If you can't get the TC into true neutral, after you remove the EM you'll be able to turn the TC's splined shaft to the correct position (neutral) with pliers or channel locks. While doing that you may need to move the rear driveshaft back and forth a bit to make it easier, or not.
4. Reuse the black plastic gasket/spacer if it's in good shape. No sealer required.
5. Be sure to fasten the pigtail connector to the bracket up in the driveshaft tunnel. We've seen those wires get caught in the driveshaft and the results are not pretty.
Hope that helps.
bigdog9191999
Full Access Member
mine has been acting up for a while, i haven't felt it important enough to fuss with yet.
Lindseydae
TYF Newbie
- Joined
- Aug 13, 2025
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I would, mines been acting up for a little while now but I believe it helped cause my Tcase to go completely out today. YAY.
rockola1971
Full Access Member
That encoder motor didnt cause a Tcase to "go out". Low on Tcase fluid causes a Tcase to go out.
Lindseydae
TYF Newbie
- Joined
- Aug 13, 2025
- Posts
- 12
- Reaction score
- 1
Why wouldn’t it? Especially if it never 100% stayed on 2wd and would switch on whatever it wanted to going down the road.
rockola1971
Full Access Member
There are detents for each position so the encoder wouldnt get TCASE stuck in between sectors. With a NP246E Tcase you can switch on the fly to 4wd HI and AUTO 4WD "while going down the road", the TCASE is made for that. The TCASE module will not let you do it in 4WD Low. Most dont even know how or even that the NP246E can be put into Neutral so that point is moot.
2 most common failures of the NP246E in order are:
(1) Low on fluid or empty because of pump rub hole in the rear case and/or leak rear seal
(2) Stretched drivechain which either slaps a hole in the case or stretches so bad that it completely comes of the gears and frags a hole in the case.
Other than that, drive it until its bearings wear out. They arent rocket science to work on and only require internal/external snapring pliers to work on, all else is common hand tools. Rebuild parts are relatively inexpensive.
