I'll start at the beginning, I picked my truck up around 3 weeks ago. I had my sunroof and sidesteps adjusted for rattles and had them attempt to find the cause of the mysterious power failure (see related post).

When the service guy pulled it up, I glanced in and noticed the red "Neutral" LED on the Transfer Case Control panel (or whatever its called) what lit up red. In the 5 months I had the H2 I had never seen it out of 4hi that you use for normal driving. (never had the chance to hit the mud). I immediately pointed it out to the service tech. He hit the 4hi driving mode and the truck made a terrible metallic clank. (not the normal clank you hear when you shift between 4lo locked etc.)

So it shifted back into 4hi, all the gears worked. The service guy busted out my manual from the glove box and attempted to put the h2 back into neutral, which ur supposed to use for towing or what not. He was unable to get it to shift. So I left and told him I would watch it.

A short while later that day, after I had parked normally and ran some errands, I got back in the h2 and started it up to noticed the red neutral LED was on. I repeatedly hit the 4hi but it would just flash, then go back to red. I shifted the truck into drive and went on my marry way. I hit 4hi while driving and it will engage normally, no clank sound at all though.

I went off roading in the mud one rainy night a couple days later, and found that it kept slipping out of 4hi locked into neutral. as long as I was moving, i could hit 4hi locked and it would go back. When I left the mud for the highway, and hit 4hi, it refused to engage even when moving and kept going back to red. Its at the dealership right now and im hearing the standard "we cant figure out what the problem is" from them.

Quick recap for those who didnt want to read all of that.

1. when h2 is started, all 4 lights come on in the transfer case, 4x4 controls, until randomly the red one stays on.
2. Will NOT shift from neutral to any other mode until vehicle is in motion. and even then I have to hit 4hi a couple of times until it stops flashing and stays.
3. none of this seems to effect the vehicle being drivable, R, D, 1,2,3 all work.

The BIG concern is since I picked it up 3 weeks ago, my fuel consumption has greatly decreased. I know H2's are bad, but I went from around 11 to 12 in the city, to around 6 to 8 since I picked it up. Also, if you look at the pic, i would stop several times in the mud and hit the gas, yet NO mud flew up from the rear tires, only the front. Its like the rear wheels arent producing power. Is that even possible?


3.

 

i'll start with question 3 - Hell yes that's possible, if your transfer case is frogged up! that's not normal, and the fact that the tech let you drive it off the lot like that sucks. i don't know what year yours is, but i HAVE NEVER had this happen (bet it hapens tomorrow, damm you). you need to get it back to the dealer, and if they continue to tell you they can't find it, contact GM directly. it's not only annoying, it's dangerous.

and damm glad to see you were playing in the mud[sm=happybounce.gif]

 

Well, the dealership called me today and said they were able to fix something for a change! lol

They said the "Transfer Case Actuator" needed to be replaced. So it seems that is the cuplrit, it supposed to be ready tomorrow!

Hopefully if this happens to anyone else here, now they have a reference.

 

Good to hear. As stressful as this was, glad you took the time to document on the forums. Let us know if it's tip top shape, untill than take care.

 

$344 for a Transfer Case Actuator and another $224 for installation. Thank god for warranties. LOL

 

Is this the right part? Thanks.

More Information for DORMAN 600908

 

Happened on mine a few years back. I bought the part and installed it myself. It cost me about 180 dollars and took twenty minutes to replace. I did not diagnos it. I figured it was either the actuator or the switch panel itself so I started with the least expensive part and it fixed the problem. it was only in 2 wheel drive when mine went bad. In my case it was only the rear tires that were turning.

P.S. my truck looks almost identical to yours minus the chromed rims.

 

I've ordered the part and plan to install asap. btw, do you know if driving while the neutral light is on to have any negative impact on the vehicle? It seems when the light is on there isn't any detriment to performance in any way. Thanks!

Ben

 

I really can't answer that. I don't know. I replace the actuator on mine the next day.

 

Installed the Dorman pn mentioned in an earlier post. Test drove and cycled the transfer case in all settings and performs the way it should. Total time to install was 30 mins. No jack or lifting of any kind was necessary. Yellow light for 4HI remains illuminated and no more red neutral light at random. Thanks for the replies everyone. If you have any questions re this install let me know!

Ben