Three problems related to transfer case have been reported for the 2004 GMC Sierra. The most recently reported issues are listed below.
The manual shift on the fly system (msof) with new venture gears automatic transfer case is defectively designed. A metal anti-rattle clip works it way through the case housing, causing all fluid to leak out of the transfer case. The clutches then burn out rendering the transfer case useless. The result is no 4 wheel drive (no power to front wheels) when shift on the fly is pressed, leaving driver sliding on snow or ice--which happened to me in a near wreck. I recovered from the slide and got the vehicle home and then to a repair shop (once the snow melted) for a new transfer case (repair ongoing). Drivers may rely on the 4wd in inclement weather to certain conditions and be injured when the 4wd does not engage due to the defective transfer case. . Read more...
I purchased my 2004 GMC Sierra 1500 4x4. I put it in 4 wheel drive to go through some ice and it made a very loud clank. Not long after that when I put it in reverse or drive it also made the same loud clank. It did not sound like that when I first bought the truck. Now the truck has trouble going into 4 wheel drive and also gets hung in reverse. It has almost caused me to get in a bad accident. My cruise control also has have 6 malfunctions. I had the dealer fix it initially. I have fixed it subsequently due to the fact they said it was a blown fuse. The 4 wheel drive and transmission problems were addressed 3 times and all the dealers said nothing was wrong. An independent mechanic said there is a defect with my transmission and transfer case. That is it with the truck. Now just last Thursday Feb 3, my bridgestone tire separated. My tire dealer said the tire was defective. There was no evidence what so ever that there was any damage to the tire to cause the blowout. It should not have separated. It caused a fire. It was quickly put out.
Transmission will slip every so often, also it will make a loud noise when shifting from 2nd to 3rd. This happens alot but not every time. The four wheel drive makes a grinding noise as you start moving and continues for a good distance (4 high).