Three problems related to transfer case have been reported for the 1996 Ford Explorer. The most recently reported issues are listed below.
4x4 fails to activate leaving vehicle impaired in 2 wheel mode during critical driving times. Switch on dash goes out, appears to be failure of 4x4 control module and transfer motor. Problem occurs after battery has been disconnected. Repair for vehicle requires changing out control module or transfer case motor. Problem appears to occur in all models of Ford Explorer 1991 - to date.
The transmission will not shift into drive. When in drive the car coasts at about 1 mph. It will go into reverse and park ok. The car is driven under normal to light driving conditions. I has never been used for towing. The transmission fluid has been checked and it is fine. The warranty expired on 3/9/2000. Just a week prior to the warranty expiration warranty work was completed on the transfer case and nothing was noted as being wrong with the transmission. The last scheduled maintenance was completed on the vehicle in June 2000. The brakes pulsate when slowing down from high speeds. They were serviced once by Ford for this problem and the servicing did not correct it. Ford refused to service them again and they continue to pulsate when slowing down from high speeds.
Whenever placeing in 4x4 mode, and then pressing gas pedal, vehicle would slip out of 4x4 mode. This is a constant problem. Been to dealership 3 times for problem , but it was not resolved.