One problem related to transmission fluid leaking has been reported for the 1998 Chevrolet Tahoe. The most recently reported issues are listed below.
Steering problem- I suddenly lost steering while driving. According to the dearorship this was caused by a malfunction of the power steering sensor. I almost lost control of the car while driving at 55 mph, and luckily there were no vehicles around and I was able to pull off the road. I asked the dealer if there was a recall on this, and they said there was not. The vehicle was not under warranty either. Brakes- while my husband was driving, he lost brakes on the car. According to the dealer service dept, the real axel seals were leaking, and the front calipers were stuck. Seals and gaskets were replaced along with the master cylinder. This item was covered under warranty. We've had on-going problems with the vehicle braking very roughly and "skipping". The rotors have been replaced twice due to them warping due to overheating. The brakes are still giving us problems. The transmission suddenly went up while driving at 35 mph. There were absolutly no signs of this happening before this time. The fluid was clean when I pulled the car over, and there was no slipping either. I was driving along and a very loud noise was coming from the car- it sounded like the rear-end, and the car became suddenly undriveable. Luckily I was on a deserted road and was able to pull over. I feel that if I was in heavy traffic driving at 55-65 mph in any of the above instances a serious accident could have occurred.