Two problems related to transfer case have been reported for the 1997 GMC Jimmy. The most recently reported issues are listed below.
While driving along the pennsylvania turnpike I had my 1997 GMC Jimmy in cruise control. I taped to brake to turn off the cruise control. After resuming the cruise control the vehicle began picking up speed much to fast. I again tapped the brake and shut off the cruise control. I then heard what seemed like a flat tire, I began pulling off of the road. As I looked in the passenger side mirror I could see flames coming from the passenger side rear of the vehicle. After stopping the vehicle I said to my mother the passenger "the vehicle is on fire get out" after she opened the door the flames tornadoed and came inside the vehicle and started everything on fire. I then pulled my mother over the console and dragged her away to safety, the vehicle in less than 20 seconds was engulfed in flames.
Transfer will not engage/disengage all of the time. Two gm dealerships have looked at the vehicle and neither can find the cause, suggested that I start replacing parts and hope I get the right one. The first incident occured on snow slickened roads, the transfer case would not engage four wheel drive rendering the vehicle rwd only . Second incident occured while driving down a steep mountain road in low range when I got to hard paved road the transfer case would not disengage.