NHTSA Complaint #11496981 — 2013 GMC TERRAIN

A loud popping noise was coming from the middle to back of vehicle. Upon inspection by independent repair shop a hole in side of transfer casing was found. No warning lamps came on to indicate any problem even after noise was heard. Once problem was determined it was felt that if vehicle had not been taken out of operation when it was and continued to be driven that a possibility could exist of the transfer case gearing becoming bound up and causing loss of control of vehicle due to various wheels possibly binding or maybe locking up. Transfer case has been replaced.The transfer case was disassembled and found to have intermediate shaft bearing (if I have identified it correctly) completely destroyed causing shaft to come out of alignment and all attached gears to mesh incorrectly causing gear damage. In reviewing this site it was noticed that this problem has occurred three to four times over the past few years to other vehicles as well. It would appear that there may be an issue with the bearing associated with the intermediate shaft on the side of the transfer case where the hole in the case is found and could possibly be associated with something in either the design of the transfer case or quality of the bearing itself.