The transfer case shift control module senses rear to front slip, a difference of rear to front wheel speed, attempts to correct the difference by activating the encoder motor, to apply more torque to the front wheels.
| • | Ignition is ON. | 
| • | System voltage is 9-16 volts | 
The transfer case shift control module is unable to correct sensed slip for 10 consecutive seconds.
| • | All clutch activation, slip control will be disabled. | 
| • | The Service AWD indicator will remain illuminated for the remainder of the current ignition cycle. | 
| • | A history DTC will clear after 100 consecutive ignition cycles without a fault present. | 
| • | Use a scan tool in order to clear history and current DTCs. | 
The numbers below refer to the step numbers on the diagnostic table.
Determines of DTCs C0300 or C0305 have set.
Helps determine if the DTC set due to a mechanical or an electrical fault.
Tests the integrity of the Motor Control circuit.
Determines whether the transfer case clutch pack is holding.
Step  | Action  | Yes  | No  | 
|---|---|---|---|
Schematic Reference: Transfer Case Control Schematics  | |||
1  | Did you perform the Diagnostic System Check - Transfer Case?  | Go to Step 2  | |
Has the transfer case shift control module set DTC C0300 or C0305 as a current DTC, or does the front or rear propshaft RPM drop out or become erratic while driving at a constant and steady speed?  | Go to Step 3  | ||
 Is the motor encoder turning ON?  | Go to Step 5  | Go to Step 4  | |
 Did DTC C0310 set?  | Go to Step 7  | Go to Step 8  | |
 Does the clutch pack hold the propshaft and prevent it from being turned?  | Go to Step 7  | Go to Step 6  | |
6  | Remove the transfer case and overhaul. Did you complete the repair?  | Go to Step 9  | --  | 
7  | Replace the transfer case encoder motor. Refer to Transfer Case Motor/Encoder Replacement . Did you complete the repair?  | Go to Step 9  | --  | 
8  | Replace the transfer case shift control module. Refer to Transfer Case Shift Control Module Replacement . Did you complete the repair?  | Go to Step 9  | --  | 
9  | 
 Does the DTC reset?  | Go to Step 2  | System OK  |