- Using a press, install the inner output shaft  bearing
race in the transfer case.
 
- Using a press, install the outer output shaft bearing race in the transfer
 case.
 
- Using a press, install the output shaft
bearing  on the output shaft.
 
- Install the output shaft in the transfer case.
 
- Install the output shaft spacer on the output
 shaft.
 
- Install the outer output shaft bearing.
 
Notice: Refer to Fastener Notice in the Preface section.
Important: Do not tighten the nut until the final adjustment of the preload, tooth contact
 and backlash is completed.
-  Using   J 46003 
    and
  J 46001 
  , install a new output
 shaft lock nut.
 
Tighten
Tighten to 295-403 N·m (218-297 lb ft).
Important: If the preload is not within specification, tighten the lock nut in 5-10
degree increments until the correct preload is obtained. If the preload is more than
 specified, install a new spacer.
- Using   J 46003 
   and a
torque wrench, measure the output shaft preload.
 
Preload
Output shaft preload at starting with a new bearing should be 0.52-0.97 N·m
 (4.6-8.6 lb in) shaft preload at starting with a reused bearing
 should be 0.30-0.52 N·m (2.7-4.6 lb in).
- Clean the contact surface of the ring gear and the ring gear mounting
 case.
 
- Heat the ring gear in boiling water (1) for  10 minutes.
 
- Carefully remove the ring gear from the boiling water.
 
- After the moisture on the ring gear has completely evaporated, quickly
 install the ring gear to the mounting case.
 
- Align the marks on the ring gear and mounting  case.
 
- Allow the ring gear to cool before tightening the bolts.
 
- Install the 10 bolts.
 
- Tighten the bolts in a diagonal pattern.
 
Tighten
Tighten the bolts to 78 N·m (57 lb ft).
- Using a press, install the right bearing
(1) on  the mounting case.
 
- Using a press, install the left bearing
on the  mounting case.
 
- Using a press, install the left mounting
case  outer bearing race in the transfer case.
 
- Apply gear oil the ring gear mounting case bearings.
 
- Install the ring gear mounting case in the transfer case.
 
- Align the spacer with hole in the case.
 
- Install the spacer.
 
- Using a brass bar and hammer, install the ring  gear mounting case washer.
 
- Install the bearing cap and bolts.
 
- Tighten the bolts
 
Tighten
Tighten the bolts to 63 N·m (47 lb ft).
Important: Backlash should be checked in 3 different positions on the ring gear.
- Using a dial indicator, check the backlash of  the ring gear.
 
Backlash
Backlash should be 0.10-0.15 mm (0.0039-0.0059 in).
- If
the backlash is not within the specified value,  replace the ring gear mounting case
left bearing side washer. For ring gear backlash shim selection, refer to
General Specifications 
.
 
- Coat the teeth of the ring gear with Gear Marking  Compound GM P/N 1052351
(Canadian P/N 10953497).
 
- Rotate the ring gear.
 
- Inspect the ring gear contact pattern. Refer to
Gear Tooth Contact Pattern Inspection 
.
 
- If the gear tooth contact pattern is incorrect,
 replace the output shaft shim. Refer to Output Shaft Shim Selection Chart in   
General Specifications 
 
- Using   J 46003 
   (1) and
a torque wrench, measure the output shaft preload.
 
Preload
Output shaft total preload with a new bearing should be 0.3-0.45 N·m
 (2.7-4.0 lb in). Output shaft preload at starting with a reused
bearing  should be 0.19-0.33 N·m (1.7-2.9 lb in).
- If output shaft total preload in not within specification,  replace the shim.
Refer to Preload Shim Selection Chart in   
General Specifications 
 
Important: Do not tighten the nut until the final adjustment of the preload, tooth contact
 and backlash is completed.
- Using   J 46003 
    and 
 J 46001 
   , tighten the output
 shaft lock nut.
 
Tighten
Tighten to 295-403 N·m (218-297 lb ft).
- Using a chisel and a hammer, stake the output  shaft retaining nut.
 
- Install the right wheel drive shaft oil
seal  to a depth of 33.7-34.3 mm ( 1.328-1.350 in).
 
- Install the left wheel drive shaft oil seal
to  a depth of 9.7-10.3 mm ( 0.382-0.406 in).
 
- Install the output shaft oil seal to a depth
 of 1.1-1.9 mm ( 0.043-0.075 in).
 
- Using a press, install the dust deflector
to  the extension housing.
 
- Remove the old sealant from the transfer case extension housing mating
 surface.
 
- Remove the old sealant from the extension housing mating surface.
 
- Apply a 1.2 mm (0.047 in) bead  of silicone sealant GM P/N 12346240
(Canadian P/N 0953493) to the extension  housing.
 
- Install the extension housing and 4 bolts  to the transfer case.
 
Tighten
Tighten the 4 bolts to 26 N·m (19 lb ft).
- Using a soft faced hammer, install the alignment
 pins until a height (A) of 10-11 mm (0.393-0.433 in)  is
obtained.
 
- Using a soft faced hammer, install the alignment
 pins until a height (B) of 6.5-7.5 mm (0.256-0.295 in)
 is obtained.
 
- Install the damper and 3 bolts to the  transfer
case.
 
Tighten
Tighten the 3 bolts to 26 N·m (19 lb ft).
- Install the transfer case breather plug.
 
- Install the transfer case breather oil deflector on the transfer case
 cover.
 
- Remove the old sealant from the transfer case cover mating surfaces.
 
Important: The silicone sealant should be allowed to cure for 1 hour or more before
 filling with fluid.
- Apply a 1.2 mm (0.047 in) bead  of silicone sealant GM P/N 12346240
(Canadian P/N 10953493) to the transfer  case cover.
 
- Install the transfer case cover and the 8 bolts.
 
Tighten
Tighten the 8 bolts to 20 N·m (14 lb ft).
- Install the transfer case drain plug with a new  gasket.
 
Tighten
Tighten the drain plug to 49 N·m (36 lb ft).
- Install the No.2  transfer case plug with  a new
gasket.
 
Tighten
Tighten the drain plug to 49 N·m (36 lb ft).
- Install the No.1  transfer case plug with  a new
gasket.
 
Tighten
Tighten the drain plug to 49 N·m (36 lb ft).
- Install the transfer case mounting studs.
 
Tighten
Tighten the mounting studs to 39 N·m (29 lb ft).