Eight problems related to transfer case have been reported for the 1998 Jeep Grand Cherokee. The most recently reported issues are listed below.
While driving the 1998 Jeep Grand Cherokee laredo, the vehicle's drive train seems to be binding. While attempting to turn, the vehicle practically comes to a halt. Taken to Chrysler dealer numerous times, 1st time entire rear differential, axles and all were replaced (no charge-they claim there was a recall? I never found this recall) vehicle was fine for a few months afterwards but then has acted similarly ever since, dealer claims they don't have time to look at my vehicle. While in a parking lot w/vehicle 's engine running, I decided to shift transfer case from hi to lo (all time 4wd) and noticed that the shifter does not indicate hi but does indicate lo. Found it hard to find neutral too, then lights indicated "lo" when shifter was still allegedly in hi? not sure but believe it may be a linkage adjustment issue. It may not be completely "locked" in position. Also noticed that when the engine was shut off, the vehicle moved slightly, sort of like trying to find a gear. Same problem as it's been for the previous 6 yrs!.
I recently found out that the viscous coupler in my 1998 Jeep Grand Cherokee needs replacing. This part when defective does not allow the vehicle to make safe turns. The turning radius at slower speeds is absolutely awful and I have had several near misses while trying to manuver the vehicle that suddenly drives as if it we in 4wd low gear. I have heard that this is a common problem from others who own Jeeps and postings on the web. I have been aware of the tight turning radius for quite a while but was not aware anything was wrong. The vehicle has been in for tune ups and oil changes and nothing has been mentioned to me until just now.
Heard a noise coming from the rear of the car took it into the shop and was told that it was the rear differential, and I was also informed that my transmission was slipping in 1st & 2nd gear. I had the differential repaired and the transmission serviced. We got snow this year where you would need the 4 wheel drive, well being I never had the need to use the 4 wheel drive mode I was surprised to find out that mine didn't work. Took it into the shop and was told that the transfer casing and transmission need to be replaced. So I took it to the dealer I bought the Jeep from. I let them repair my transfer casing and was told because I didn't have the exact same tires on the vehicle that is what caused the transfer casing to fail. The tires were the same size on the front and rear just different brands. They told me that I didn't have a problem with the transmission. I then picked the Jeep up and the roaring sound came back so I took it to the dealer to see what they thought the noise was I was told at that time that my front differential was bad and needed to be repaired and that the rear differential was also bad, but being I had that work done at a independent shop I had to take it back to them to fix the rear and then took the Jeep back to the dealer to have them do the work on the front. I am in the process of taking the Jeep back to the dealership because my Jeep is now pulling to the right. I was able to drive my Jeep for a week. I really have not had my Jeep since January I really think that daimler Chrysler knows there is a problem with the 1998 Jeep Grand Cherokee and I hope that something will be done about.
Transfer case failed at approx. 75,000 miles. No known cause/effect discovered. Mechanics said this should not have happened. $1800 to fix. Believe Chrysler knows it has a defective transmission and will not recall them.
Valve body replaced 4 times still not fixed causing fatigue in u-joints could cause rollover from front of driveshaft to hit ground problem well known by christler affects several models including 1999 there only remedy is to replace valve body over and over again untill they get a good one defective valve body can also cause other problems with transfer case and differentials in my opinion they are just trying to get these vehicles through warrenty instead of fixing fixing them.
Transmission makes a whining noise when vehicle is put into reverse when the vehicle is first started, rear end replaced, front end replaced, transfer case replaced, transmission taken completely apart and no repair. Service department does not know how to repair.
Dealer sold vehicle with leaking rear seals, defective differential. Noticed bumping and whining noise less than 8 hours after purchase. Sun roof leaked causing the headliner to detach from roof of vehicle. Repaired once-said drain tubes were routed properly. Second time replaced roof-said seals did not match. Rear differential replaced. But did not address leakage around transfer case, seals etc in Dec 98. Now it's in the shop again! gas gauge fluctuates to empty when idling. Transmission slips. Driver seat automatiically reclines and heater does not work consistently.
While driving on the highway vehicle locked up and started smoking. Vehicle was taken to an independent mechanic who stated that problems were differential and transfer case.