Two problems related to transfer case have been reported for the 2005 Chevrolet Avalanche. The most recently reported issues are listed below.
2005 Chevrolet Avalanche. Consumer writes in regards to airbag and traction control service lights came on also the four-wheel drive stability system was disabled.
Traveling home from work on the interstate at regulated speed (65mph). As I started to accelerate to maintain speed gingo up a hill, the message "transmission hot" came on the in-dash display and engine began revving as if not in gear. I could not accelerate and had to turn on flashers and merge to safety lane on right. I continued to slow down until I could engage the transmission again at around 30 mph in 3rd gear. As soon as I started to accelerate past 35-40 mph, the transmission slipped again and would not engage any gear. This happened all the way home so what should have been a 20 minute drive turned into an hour. I couldn't get above 35-45 mph without this happening each time which made navigating the hills of northern va in the rain not very fun for me nor the hundreds of frustrated drivers behind and beside me. As I pulled into the driveway and parked, I could notice a 'burnt and sour" smell. . . Most likely transmission fluid. I didn't see any leaks or drips but the engine was extremely hot as was transmission and transfer case. This has been happening off and on for a few months now but in very limited occasions and never for more than 10-20 seconds so I haven't contacted a service station but will definitely do so this weekend as I am unable to leave work during the week for this issue.