Three problems related to transfer case have been reported for the 2006 Ford Explorer. The most recently reported issues are listed below. Please also check out the statistics and reliability analysis of the 2006 Ford Explorer based on all problems reported for the 2006 Explorer.
Transmission failure resulting from michelin incorrectly marking tire sizes: I had four michelin cross terrain p235/70r16 tires on my SUV. Two wore out and where replaced with michelin latitude p235/70r16 tires as the cross terrain model was discontinued. The SUV then started having transmission problems especially when accelerating and the transmission failed and had to be replaced. The new transmission immediately started having similar transmission problems also. After multiple specialists examined the SUV, the problem was isolated to the 4x4 module engaging the transfer case during acceleration. It was determined by measuring the tires that the vehicle in fact had sets of tires with different circumferences, even though the tires were marked as being the same size. When the circumferences of the tires are not the same it causes the 4x4 module to believe a slipping condition is present and engage the transfer case. The continual engagement of the transfer case results in damage to the transmissin. I contacted michelin consumer care four times over a two month period only to be totally ignored. Michelin has sold tires that are marked incorrectly as to size, which results in damage to your SUV, and they refuse to accept any liability.
I bought a 2006 Ford XLT Explorer with apx. 17,000 miles. I had it for about 3 months it had about 19,000 miles. I drive it about 100 miles to a convention and by the time I got there and pulled into a parking lot the vehicle started shifting hard, jerking and lunging. It was making a loud banging sound and felt like the transmission was going to fall out. I took it to Ford, they did some work on the transfer case and replaced a module. About a month and a thousand miles later, it started doing it again. Took it back to Ford and they did some more work. The shifter lever was replaced. Later it started doing it again. I have taken it back several times and the vehicle continues to have the problem. It doesn't do it every day but does do it several times a week, some days are worse than others. As time goes by it seems to get worse and happen more often. Sometime when I put the vehicle in reverse there is a delay to engage and one morning it cause me to back into another vehicle. It also has a cracked running board.
At sharp turns either to the left of the the right, the auto 4x4 enagages and you feel a large shutter. I was fixed by the dealer(they reprogramed the 4x4 permiters) 4 months later if has came back. Nothing has seemed to fix it, many similar situations like mine on the internet.