Service 4WD Message May be Displayed on GMC Yukon XL 1500

The 4WD transfer case encoder motor position sensor or the selector switch may fail causing the service 4WD message to be displayed. Fault code(s) stored in the transfer case control module will be of assistance in determining the exact fault causing the message to be displayed.

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Average mileage: 126,973 (19,000–225,000)
Drive Trains affected: 2WD, 4WD
8 model years affected: 2000, 2001, 2002, 2003, more2004, 2005, 2006, 2008
69 people reported this problem
35 people shared problem details
2005 GMC Yukon XL 1500- 4WD82,000
Getting SERVICE 4WD on cluster. All lights out sometimes on push button control. Bulb test passes. Has gone into 4WD LO mode by itself. Can't change drive mode. Problem and message will go away for weeks sometimes.
2001 GMC Yukon XL 1500- 4WD136,000
Gets stuck in 4 wheel drive and does not return to 2 wheel main driving position
2005 GMC Yukon XL 1500- 4WD100,000
When I start my 2005 GMC Yukon, it will often times, by stuck in 4WD and won't switch to 2WD when I push the 2WD button. I've changed the actuator, but it's still stuck in 4WD. I've already purchased the encoder ring, but, after watching an installation video on "YOU TUBE," it talks about RE-PROGRAMING the encoder ring. How in the heck is this a DIY project if I don't have the computer programing equipment?!!
2005 GMC Yukon XL 1500- 4WD124,000
Yukon would switch itself into 4wd from 2wd. My wife figured out how to turn off the ignition and get it back into 2wd again. Glad to know that its the sensor that needs to be replaced.
2005 GMC Yukon XL 1500- 4WD78,500
upon starting, 4wd low is already engaged, difficult switching out of low. has happened twice.
2005 GMC Yukon XL 1500- 4WD75,000
intermittent "service 4wd" message resulting in total outage of 4wd and even involuntary shifting into 4wd Low.
2003 GMC Yukon XL 1500- 4WD95,000
it would switch into 4WD on it's own and I couldn't get it switched back to 2WD. It did this randomly. I took it in for repair...I had an extended warranty. They said it wasn't covered. Had to replace the Transfer Case control module sensor. I think it should be covered...nothing I could have done to prevent this.
Can't shift into 4 wheel drive without getting stuck in. 4 wheel drive
2004 GMC Yukon XL 1500- 4WD160,000
Service 4WD notice routinely reported on dash. Inability to change 2WD to 4WD (or back) particularly after extended running period. Periodic solution by turning ignition off then back on, but solution is unpredictable.
2005 GMC Yukon XL 1500- 4WD126,000
Same as previous posters. Intermittently goes into 4-Lo. This is a safety hazard, and another thing for GM to be ashamed of about this particular vehicle, which is both the worst AND most expensive I've ever owned!
service 4wd message on dash and no lights on selector switch
2000 GMC Yukon XL 1500- 4WD205,000
used to stick in 4 WD Now it wont go in 4 WD atm all
2008 GMC Yukon XL 1500- 4WD75,974
Service 4 WD indicator flashes, then car has no power. Disconnected battery and vehicle rebooted. Have not taken for repair yet. Suspect sensor is bad.
2003 GMC Yukon XL 1500- 4WD177,560
4WD light comes on intermittently
2000 GMC Yukon XL 1500- 4WD170,000
Does not go into overdrive, also no passing gear. At 55mph. Rpm to high running close to 3000.
2004 GMC Yukon XL 1500- 4WD110,000
Don't go into 4w drive
2005 GMC Yukon XL 1500- 4WD119,000
It sounds like a grinding noise in my front end but most people said it's a C0327 sensor if you need that in your transfer casing will that make it make noise if its not fixed yet
will not stay in 2 wheel drive . It keeps going in 4 wheel drive and will not come out.
2006 GMC Yukon XL 1500- 4WD130,000
Changes from 4wheel low to 2 wheel. Never know when it will happen. Stability track shifts off and service 4wheel drive light comes across message panel.
"Service 4wd" warning light comes on intermittently. Turn vehicle off and on and it will reset so I can change to 4wd if I need to.
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