Transfer Case Model 1354: Disassembly

Remove transfer case. See REMOVAL & INSTALLATION . Remove rear output flange lock nut, flat washer, rubber seal and yoke. Remove front output flange lock nut, flat washer, rubber seal and yoke.
On electronic shift models remove electric clutch wire (Brown) from transfer case harness connector by removing terminal lock from rear of harness connector. Remove shift motor, noting position of triangular shaft in case and slot in motor. See Fig 1 .
On all models, remove case-to-cover bolts and pry front case and rear cover apart. Ensure rear cover is facing up. If speedometer drive gear or ball bearing assembly is to be replaced, remove rear output shaft oil seal. Remove internal snap ring and drive bearing assembly from outside case.
If required, remove front output shaft caged needle bearings from rear cover. Remove clutch coil assembly, "O" rings and Brown wire from cover of electronic shift model. Remove 2WD-4WD shift fork return spring. Remove 2WD/4WD lock-up and shift fork as an assembly from output shaft. See Fig 2 .

Fig 1: View Of Electric Shift Motor & Shift Cam Alignment
Courtesy of FORD MOTOR CO.

Fig 2: Removing Lock-Up Hub & Drive Chain
Courtesy of FORD MOTOR CO.
Remove shift fork from lock-up assembly. If required, disassemble 2WD-4WD lock-up assembly. See Figure . Remove internal snap ring and pull lock-up hub and spring from collar.
On electronic shift models remove helical cam assembly from case. If required, remove helical cam, torsion spring and sleeve from helical cam shaft.
On all models, remove front output shaft snap ring and thrust washer. Remove chain, driven sprocket and drive sprocket as an assembly. Remove oil pan magnet. Remove rear output shaft with oil pump.
WARNING: If resistance is encountered when removing oil pump assembly, DO NOT pound or force to remove pump. Start procedure over.
If required, rotate pump to align cover keyway to shaft pin of output shaft and pull pump assembly straight out. If necessary to replace oil pump drive pin, measure pin height above output shaft (for reassembly reference). Remove oil pump drive pin from output shaft.
Remove front output shaft. Remove shift rail. Slip high-low range shift fork out of inside track of shift cam and remove high-low shift fork and high-low shift collar together. See Figure or Figure .
On manual shift models push and pull out anchor end of assist spring from locking post in front case half. Remove spring and roller out of shift cam. See Figure .
On all models, turn front case over, remove main drive gear bearing retainer, input shaft and planetary gear set as an assembly from front case half. Expand tangs of large snap ring in main drive gear bearing retainer, push main drive gear bearing retainer and slide it off bearing. See Fig 3 .
Lift input shaft and planetary gear set from main drive gear bearing retainer. If required, remove oil seal from main drive gear bearing retainer. See Fig 3 .

Fig 3: Exploded View Of Planetary Gear Set
Courtesy of FORD MOTOR CO.
Remove snap ring from planetary carrier and separate planetary gear set from input shaft assembly. Remove snap ring from input shaft. Press off bearing from input shaft. Remove thrust washer, thrust plate and sun gear from input shaft. See Figure or Figure .
Remove ring gear from front case using a press as necessary. Note relationship of serrations to chamfered pilot diameter during removal. Remove snap ring retaining front output shaft bearing using drift.
On manual shift models, move shift lever down to 4L then up 2 detents to 4H position. Mark a line on outside of case using side of shift lever and a grease pencil. Remove 2 Torx head set screws from front case and from shift cam.
NOTE: DO NOT pound on the external snap ring during removal.
Turn front case over and remove external clip. Using a screwdriver, pry shift shaft out of front case and shift cam.
NOTE: The shift lever and cam shaft do not have to be disassembled unless parts have to be replaced.
Remove "O" ring from second groove in shift shaft and discard. Remove detent plunger and compression spring from inside of front case. See Figure or Figure .
Remove front output shaft oil seal. Remove internal snap ring and drive bearing out of front case.