The Merchant Automotive Transfer Case Upgrade Kit with Magnetic Drain Plugs combines our two most popular transfer case upgrades for 2001–2007 Duramax Silverado and Sierra 2500HD/3500HD trucks. Pump rub is a well known failure on these transfer cases. The gear pump housing "floats" in the rear case half and is held in place by tabs. Over time those tabs wear through the factory spring clip and into the magnesium case, causing a leak that usually happens only while driving. These transfer cases have no low fluid warning, so the damage is often done by the time anyone notices. This kit replaces the factory pump housing with our CNC machined 6061 aluminum housing to prevent pump rub. It also swaps in stainless steel magnetic drain and fill plugs that catch metal debris and help the fluid last longer.
Key Features
- Merchant Automotive CNC machined 6061 aluminum transfer case pump housing
- 304 stainless steel magnetic drain plug and fill plug
- Includes adapter gasket, RTV silicone with applicator nozzle, and blue threadlocker
- Fits NP261HD, NP263HD, NP261XHD and NP263XHD transfer cases
- Limited lifetime warranty against pump rub
Benefits
- Prevents pump rub failure, or repairs it alongside a new rear case half
- Magnetic drain plug traps wear metal so it doesn't keep circulating
- Everything for both upgrades in one box, done in one service
Warranty
The pump upgrade carries a limited lifetime warranty against pump rub. The warranty applies only to installations with a new rear housing.
Installation Note
This kit is designed for OE magnesium case halves and may not be compatible with some aftermarket aluminum rear case halves, because their manufacturing tolerances vary. Verify fitment before installing. The drain and fill plugs use pipe threads. Apply new Teflon tape each time and tighten them only until snug. Overtightening can crack the rear case half.
Frequently Asked Questions
What is pump rub?
Pump rub is a common failure on GM transfer cases from 1998 to early 2007. The pump housing's locating tabs wear through the factory spring clip and into the magnesium rear case, eventually wearing a hole that leaks fluid. The leak usually happens only while driving, and these transfer cases have no low fluid warning, so it often goes unnoticed until the damage is done.
My transfer case is already leaking from pump rub. Will this kit fix it?
The kit can be used as part of the repair, but a case with a hole worn through it needs a new rear case half. See our Magnesium Rear Transfer Case Half. Installing the kit with a new rear housing also qualifies you for our limited lifetime warranty against pump rub.
How does the warranty work?
The warranty applies only to installations with a new rear housing.
Will this work with an aftermarket aluminum rear case half?
Maybe not. The kit is designed for OE magnesium case halves. Some aftermarket aluminum rear halves have inconsistent manufacturing tolerances, so verify fitment before installing.
How tight should I make the magnetic drain and fill plugs?
Just snug. The plugs use pipe threads, so apply new Teflon tape every time you install them. Overtightening can crack the rear case half.
What fluid should I use when I refill?
We recommend Merchant Automotive Transfer Case Fluid, blended specifically for GM transfer cases.
Resources
- Blog: Transfer Case Upgrade Only vs. Upgrade Repair Kit
- Pump Upgrade Installation Instructions (PDF)
- Pump Upgrade Installation Video
- Truck U Segment: Transfer Case Pump Rub Kit
Fitment
- 2001–2007 Chevrolet Silverado 2500HD / 3500HD 6.6L Duramax (LB7, LLY, LBZ) with NP261HD/263HD or 261XHD/263XHD transfer case
- 2001–2007 GMC Sierra 2500HD / 3500HD 6.6L Duramax (LB7, LLY, LBZ) with NP261HD/263HD or 261XHD/263XHD transfer case
- 2007 fitment is classic body trucks only
Doing the job? Refill with Merchant Automotive Transfer Case Fluid, and replace the Transfer Case Adapter Gasket and the Rear Output Seal. Case already worn? See our Magnesium Rear Transfer Case Half. You can also buy the Pump Upgrade Kit and Magnetic Drain Plug Kit separately.
What's Included
- (1) Merchant Automotive 6061 aluminum transfer case pump housing
- (1) Transfer case adapter gasket
- (1) RTV silicone with applicator nozzle
- (1) Blue threadlocker
- (1) Stainless steel magnetic drain plug
- (1) Stainless steel fill plug