Vehicle Speed Sensor (VSS)
WARNING: This page does not describe the selected car, but rather 6 other vehicles, including the 2011 GMC Yukon XL, 2011 GMC Yukon, 2011 Chevrolet Tahoe, 2011 Chevrolet Suburban, and 2011 Chevrolet Avalanche. However, it is still accessible from the selected car via links, so may be relevant.
There is a VSS mounted to the transfer case on the rear output shaft. The VSS is a PM generator. The PM generator produces a AC voltage. The AC voltage and frequency increases as speed increases. The VSS is an input to the powertrain control module (PCM). The PCM sends this information to the transfer case shift control module via the GM LAN serial data bus.