Transmission Rebuild, Collapsed Lifter Debacle - Opinions Needed

[Smokin Denali]

Hello All!

I've done quite a bit of reading through various threads here and based on my somewhat unique situation, want to seek opinions on what has transpired and options to consider from where I'm at. Long, winding, story short......started feeling loss of power/shudder under load on our 16' Tahoe (5.3). Took to shop, they ran codes and determined it was a trans issue (I assumed misfire initially). They recommended me to their preferred trans rebuild partner locally and that shop confirmed it was indeed a trans issue due to the torque converter clutch failing. We were quoted ~$5,300 to include a billett torque converter, TCM, steels and bonded piston kit, 3-5 rev drum, etc. along with a reschedule of the TCM to only have the clutch engage from 5th gear and above. Rebuild went seemingly well with good communication from the shop around the Thanksgiving holiday.

The day we were expected to pick up the vehicle we received a call from the shop owner (who we'd been communicating with the entire time), explaining a situation in which our check engine light had come on. The tech took the vehicle out for a test drive, the check engine light came on and the vehicle was immediately returned to the shop. They were unsure what the issue was, so the owner then took the vehicle for a test drive himself. He drove 7-10 miles without issue and reported good operation of the rebuilt trans, and no check engine light. Closer back to the shop, he admitted that due to a traffic/intersection situation (I gathered it was a merging issue) he "really got on it" and "was really aggressive with the vehicle". Directly after the check engine light came on and by the time he got the vehicle back to the shop it was "almost undriveable". They placed the scanner on it, and got back a multiple misfire code. They spent some time trying to diagnose what might be the issue, but they are a transmission specific shop. They took the car to the mechanic shop they share a parking lot with and their team assumed it was a broken rocker arm (due to the noise I assume).

The trans shop owner immediately filed a claim with his insurance company who sent a forensic mechanic out to inspect the issue. Supposedly that inspection report (they won't share with me) states there is #7 cylinder misfire due to a collapsed lifter. Due to the fact this is a known issue with these engines and that GM issued a service bulletin for it in 23', that they would deny coverage of his claim. They supposedly took an oil sample and state that the oil is clean, and that the repair would entail new lifters and pushrods only.

The owner states he is not liable for the engine damage "because it would have happened anyway", and that I must pay him in full for the trans rebuild (i've paid ~50%). His only compromise is offering an additional year and double mileage (12 mo./12k ---> 24 mo./24k) on his trans warranty. I've spoken with a local shop I trust who won't even touch the repair due to mileage (~155k), and the dealership we purchased from as a certified pre-owned in 17' (22k miles when purchased). Dealership quoted $8k for lifters/pushrods, $12k if we include cam, and ~$16k for a reman. engine replacement with 3yr/100k warranty (non-transferrable).

1. Thoughts on if, and to what degree, the trans shop is liable for this engine damage after being "very aggressive" with the vehicle after knowledge of the check engine light being on?
2. At $5k for the trans and $8-$16k ($13k-$21k) in repair costs.....how does this impact resale value and is it worth it to complete? Again, wife is ready for a newer vehicle.

Recommendations on next steps??? Thanks in advance for the input!

sorry my friend. it aint the Tranny guys fault. Unless you abused the oil change interval, its THE ENGINE!!
You must like the truck to go for the new tranny. if true, fix the engine, drive it another year and trade in for a non Gm V8. you'll get maybe half your $ back....

Or leave it under a Chicago/LA bridge with keys in it, lose plates, no personal ID papers in it. Get Book value when it's found "stripped"....... just joking of course!

 

[mikeseay]

Welcome to the Forum from NH.

Lots of knowledgeable folks here who freely share their knowledge, experiences, and perspectives. Knowledge is power.

I hope that you will become a participating member in the Forum's discussions.

Pics of the truck, please.

What a mess of a situation.

"Wife is ready for a newer vehicle." IMO, she's never going to be fully happy with this truck again, and I suspect that you will feel the same. Happy Wife = Happy Life.

I suggest that you get what you can for the truck in its current condition, as there are always folks out there who would take this truck on as a personal project vehicle. Then, get another vehicle that your wife likes.

Sounds like you need to make your wife happy, even if that cost you a little. With a fresh transmission and we assume a nice body and interior sell it to someone (probably 8-10k) and move on. The issue will be if you get a newer one you are buying the same problem, 18-25 vehicles seem to drop like flies. Not a very bright picture but if the wife is happy…..p.s. let her contribute to picking out the new one, she may want to look outside of GM
Good luck on this one

 

[thefrey]

Can a shade tree mechanic take this on? Looks like a pretty intensive job......Would a DOD/AFM delete kit from Texas Speed (or otherwise) be the way to go?

Yes. I wish I would've seen this post earlier. I did a Texas Speed Kit on my 6.2 which had new lifters, camshaft, headgaskets, camshaft retainer plate, and some other goodies. I also did a new VVT sprocket, timing chain, and oil pump.

I am mechanically inclined, but had not done anything like that before I did my delete.

If you want to go bare minimum (and not touch anything else "while you're in there), you could easily do a new camshaft and lifters from Texas Speed + a DOD delete tune for under $1500. I rented a ton of tools from the auto parts stores (harmonic balancer puller, harmonic balancer installer, etc)

It took me about 30-40 hours to do mine myself. I also took my oil pan off, so that took extra time.


The harmonic balancer may be the hardest thing to install/uninstall. You need a solid impact to get the bolt off. You also need a good torque wrench for the heads. It is a decent idea to get ARP head studs instead of stock head bolts. They are a little bit extra, but they are a torque number spec as opposed to torque to yield (torque + angle)

This guy gives solid detailed instructions on how to do it if you wanna get an idea of what it'll take. I am more than happy to answer questions you have about this.

 

[thefrey]

I assume there is a ecm tune that can be done just to bypass the DOD/AFM all together?

Yes. You can either 1) buy a range AFM (or similar OBD2 style) disabler. This is a good option for when you have AFM lifters installed

Or 2) You can get DOD disabled in the ECM with an HP tuners. I found a guy on Facebook near me who disabled my AFM and did a little bit of a trans tune to save my torque converter for $200.


I would recommend looking at this if you need something to get you by:

I released my collapsed lifter and drove it for 15-20k miles before I did a physical delete. Might be worth a shot. Crazed Performance sells a lifter release tool on his page for $40. I uncollapsed my lifter, used a Range AFM disabler to turn off AFM, drove it with no issues.

 

[16Tahohoho]

Yes. I wish I would've seen this post earlier. I did a Texas Speed Kit on my 6.2 which had new lifters, camshaft, headgaskets, camshaft retainer plate, and some other goodies. I also did a new VVT sprocket, timing chain, and oil pump.

I am mechanically inclined, but had not done anything like that before I did my delete.

If you want to go bare minimum (and not touch anything else "while you're in there), you could easily do a new camshaft and lifters from Texas Speed + a DOD delete tune for under $1500. I rented a ton of tools from the auto parts stores (harmonic balancer puller, harmonic balancer installer, etc)

It took me about 30-40 hours to do mine myself. I also took my oil pan off, so that took extra time.


The harmonic balancer may be the hardest thing to install/uninstall. You need a solid impact to get the bolt off. You also need a good torque wrench for the heads. It is a decent idea to get ARP head studs instead of stock head bolts. They are a little bit extra, but they are a torque number spec as opposed to torque to yield (torque + angle)

This guy gives solid detailed instructions on how to do it if you wanna get an idea of what it'll take. I am more than happy to answer questions you have about this.

I wish you'd have seen this sooner as well . Great info and I really appreciate the responses from everyone. Got the Tahoe back from the engine shop with a ~$5k OTD bill.

Wifey is angling for a new ride after the rentals during this fiasco spoiled her, but we'll probably hang onto the Tahoe for a while.

Thanks everyone!

 

[thefrey]

I wish you'd have seen this sooner as well . Great info and I really appreciate the responses from everyone. Got the Tahoe back from the engine shop with a ~$5k OTD bill.

Wifey is angling for a new ride after the rentals during this fiasco spoiled her, but we'll probably hang onto the Tahoe for a while.

Thanks everyone!

Happy to hear you got it fixed. Mechanical delete or new lifters is always a solid route. As much as a headache this whole thing has been, it’s good that you caught it early and didn’t send metal all throughout your entire engine…

Biggest tip I can give you: replace your oil at 5k or lower. This will help your new lifters and help premature lifter failure.

At the very least, new lifters are always a good selling point

 

[thefrey]

I have been thinking about this, do you know what your oil pressure is when cold starting, oil pressure at cruise (say 65-75mph), and oil pressure at idle when hot?