This Only Gets Worse ...
OK. So, I picked up my H3 about 30 minutes ago. I didn't get very far. I couldn't back out of the parking space. The drivetrain was bound up. I quickly realized that the t-case was stuck in lock.
I managed to move the truck back to the service bay entrance, and politely told the guys that the drivetrain was bound up. One of the mechanics tried to argue with me, and told me that full time 4wd drives like that. Amazingly, I kept my temper, and politely asked the guys behind the counter to drive it. The first guy did, drove in a circle, and told me that it is bound up and that the "service 4wd" message just displayed. They checked the code reader, and saw the error code for an encoder motor.
NO - I AM NOT MAKING THIS UP. So, rather than drive the loaner car again, I asked them to do what they could. They said that the error code stopped, and that they had it back out of lock. I then drove it, and it is OK, at least for now.
Needless to say, we all agreed, including GM customer service, whom I called immediately, that we're not done yet. So at least GM continues to stand by their warranty.
For those interested - they did let me get pics of the failed parts. This isn't a simple ring and pinion failure - the carrier appears to have failed.




