Quote:
Originally Posted by jv2000
I just did the gear replacement and since there is so much information spread out around the internet and in forums on this topic I created a post to try to consolidate it (see below). So far so good, it fixed the problem no more warning lights and no more clicking when I turn off the car. I chose to replace the gear with a new one rather than risk it failing or slipping back into the worn out portion of the gear, my reasoning being if I was going to spend a Sunday working on this I didn't want to ever have to repeat it
I included my photos and the 3 best videos I found on the problem/replacement:
BMW Transfer Case Actuator Problem And Fix

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This article is an attempt to aggregate information in a single place regarding a defect in the X drive systems of BMWs that will typically affect ALL of the following models of BMWs at one point or another, typically around 80k-120k miles.
2001-2003 BMW X5 3.0 L6 E53
2004-2006 BMW X5 E53
2004-2010 BMW X3 E83
The model year 2001-2003 BMW does not have an actuator gear in the transfer case. See Realoem.com. It uses a different transfer case.