Circuit/System Description
WARNING: This page is about a different car, 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.
In 4WD Auto mode, the transfer case shift control module (TCCM) monitors the front and rear wheel speed sensors for slip. If the TCCM detects slip, and is unable to correct for a difference between the front and rear speed sensors, it will command the transfer case to apply the clutch.