Five problems related to transfer case have been reported for the 2004 Dodge Ram 2500. The most recently reported issues are listed below.
While driving at 70 mph on freeway, transfer case exploded and fell out on roadway along with part of the drive shaft rendering vehicle completely undriveable.
Driving down the freeway the truck became harder to steer and it felt like it was in 4 wheel drive. The indicator light did not show that it was. A little farther and the transfer case fell out on the freeway. About 3 weeks previous I also had the same feeling of it being hard to turn like it was in 4 wheel after I started it up, but it went right away. I was on vacation and had to have it towed 75 miles to dealership. They have said they don't know how this could happen,unless there was no fluid in the transfer case or it got put into reverse. Neither was the case. I was going down the freeway at 65 miles per hour and there was fluid all over the road after I got it pulled over. I have two tow truck drivers who can verify that. I feel that it went into 4 wheel drive mode on it's own and am lucky to be alive. I just had to have the whole computer system replaced about six months ago on this same vehicle and feel that I have an unsafe and dangerous vehicle. The resolution is a bill for $4028. I do have the old parts.
2004 Dodge ram diesel 2500 transfer case failed at 59,865 miles and the dealer refused to repair under warranty (maximum protection warranty upgrade purchased) due to no oil in transfer case (improper maintenance). I contacted vernon at transfer case express (510) 533-2273 and was told that this is a common problem with this transfer case that it will develop a leak at the rear seal and all the transmission fluid will leak out while driving. This was confirmed by blumenthal transmission a direct distributor of these transfer cases. This was also confirmed by the fact that no Dodge dealer in the USA has this part as it is on back order status greater than 30 days lead time. This presents as a serious vibration in the front of the vehicle (feels like a tire is falling off).
While driving 70 mph driver heard a loud knocking noise coming from the front. Vehicle vibrated uncontrollably. Vehicle was taken to the dealer for inspection numerous times, and mechanic determined that the transfer case needed to be replaced.
While driving at any speed the 4-wheel drive engaged. As a result, turning became difficult.