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Problem occurred when the right rear tire locked up. The car sat for several days in the garage after a wash. I removed the right rear wheel, brake caliper and the rotor. Axle spun freely, no indication as to what the problem was. Reassembled the rotor, Axle still spun freely, put caliper back on, Axle spun freely, put rear wheel back on and yet again axle spun freely. Lowered and have driven the car. AWD light wont go out.
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Sometimes if you drive the ca r for 2 drive cycles it will relearn If not you will need a scan tool to see if the computer is getting wheel speed data
Thank you for the info. I took the car to the dealer so that they could pull the code. (C1298) Is was an overall bad experience. Code indicated 4 trouble areas. 4WD Fuse, Wire harness and connector, Electromagnetic control coupling, AWD control ECU. Dealer could not tell me which one it might be and to add insult to injury they said they couldn't (Or wouldn't) clear the code. They did however say for a little over $3,000 they would fix the car. Still looking for direction as I am not in favor of paying a Toyota dealership to play back yard mechanic and just replace parts until the problem goes away. From what I have been able to read on line this seems to be a problem that many Venza owners have had. No recommendations from me on the Venza or the Toyota experience. My next new car will certainly not be a Toyota. I will be pulling the Wire harness and connector this weekend and looking to see if any of the connections are corroded. Again thanks for the information and if you have any additional thoughts please let me know.