Two problems related to differential unit have been reported for the 2005 Dodge Durango. The most recently reported issues are listed below. Please also check out the statistics and reliability analysis of the 2005 Dodge Durango based on all problems reported for the 2005 Durango.
While driving around 55 mph, smoke and a burning smell appeared out of the rear of the car. After stopping, then turning right, a loud noise was heard at the rear end. After arriving home, an inspection showed leaked fluid all around the underside rear end. After taking it to a mechanic, they determined that the differential pinion nut had come loose, which damaged the pinion seal, and required a differential overhaul.
Bought 2005 Durango 12/05-needed several transmission services---dealer stated low transmission fluid causing engine light to come on (9/06), stalling 3/07, at least 5 times-low transmission fluid blamed, stalling 2/08--4 times in high traffic areas, again blamed low transmission fluid. Differential leak in 3/07, now rear gear shot with a $900+ price tag and the warranty was only 3 years/36,000. (news to me--in 2005 they were advertising 7 years-70,000 on drive train).