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2003 Jeep Liberty Question: Would a leak in the front differential pinion seal cause smoking and rubbing

 

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jefrsontbc, 3.7L V6, Huntington Station, NY, July 13, 2014, 07:34
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when first running smoke comes up from the hood yet car never runs hot, coolant, oil, brake and transmission fluid levels are all fine. Now have rubbing noises coming from the wheels sometimes when first moving and slowing down

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