New 263XHD Transfer Case - medium
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New 263XHD Transfer Case, LB7 LLY LBZ 2001-2007, Duramax

No Core Charge! * Does not include encoder motor
Part Number: 10604  
No Core Charge! * Does not include encoder motor
Brand new 263XHD Transfer Case

Why Choose Our Transfer Case?

Includes Our Transfer Case Pump Upgrade:
The GM transfer cases use a gear pump inside the case that is driven off the mainshaft. The pump forces oil to the planetary as well as the drive sprocket sleeve. There are 5 tabs around the housing that fit into spots in the rear housing to position the pump. Over time, the pump can start to wear on the rear housing. This issue is referred to as "pump rub". Our Transfer Case Pump Upgrade resolves this problem. Protect your investment by preventing this condition.
Comes with Magnetic Drain Plugs:
Magnetic Drain Plugs catch small debris and help extend fluid life. Kit contains a Magnetic Drain plug and a new fill plug made out of a high strength corrosion resistant 304 Stainless Steel.

Shipped with MA Performance Transfer Case Oil:
  • Promotes transfer case performance
  • Increases shifting performance
  • Dramatically reduces wear
  • Increases component efficiency
  • Blended specifically for use in GM transfer cases
  • May be used in GM, Ford and Chrysler transfer cases
  • For use in diesel or gas transfercase
  • Cost effective upgrade for Auto Track II
  • Performs in manual or electric shift applications
  • Reduces irritating drive shaft clunk
  • Increases drive line performance by reducing clutch chatter
  • Drastically reduces wear on internal components & seals
Note: Transfer Case will be shipped with 2 Quart (64 fluid oz.) bottle. CASE WILL NOT BE FILLED WHEN RECEIVED. One Transfer Case will use 64 fluid oz
2 years / unlimited miles
 Average Rating:  5 Star Rating
 based on 10 Customer Reviews  
Write A Review
   So far so good. Easy to install., August 15, 2019  By Anonymous (CORONA, NM)(Verified)
Came packaged very well. Oil included just had to fill it up. Put about 500 miles on since I have had it with zero problems.
   Excellent investment, August 2, 2019  By SCOTT (MURFREESBORO, TN)(Verified)
No core, no extra shipping and most importantly, no more transfer case problems. Why take a chance or go through the hassle of rebuilding or trial an error solutions? buy it, replace it, done!
   Exactly what I needed, February 23, 2019  By Anonymous (ARCATA, CA)(Verified)
Beautiful product. Arrived well packaged, undamaged in any way. Appreciated that Merchant Automotive threw in some of their proprietary transfer case fluid.

No issues at all swapping the previous transfer case off of my 2004 LLY Duramax and installing this new one.

   Unmatched quality, January 20, 2019  By Seth Mathieu (Gastonia, NC)(Verified)
I own a 2002 LB7 (it has the electronic unit) I ordered this unit on a Monday night at around 10 p.m. transaction was easy and smooth even with the billing and shipping addresses being different. The next day I revieved email confirmation of my order shipment (just did the standard ups shipping) with UPS tracking number and estimated delivery date of Thursday that week. Shipment arrived that Thursday about noon. The shipment box was secure and without damage. Didn’t know what to expect when opening so I kept the expectations low. Understand me here, this was the highest quality package I have ever recieved. Thick styrofoam protecting ever inch of the unit without any movement possible. The gasket, fluid, and installation tips all nestled securely in their own cubby and a very big without a doubt noticeable tag stating to add the fluid attached to the unit. This is a very high quality product, very clean like new and has barcode stickers and also a certification plate stamped to it. It also came with the sensor on top and a new encoder motor gasket with 3 new bolts for encoder motor installation. Both the filler and drain plugs were very neatly teflon taped and partially installed. All 3 openings for the trans tail shaft and front and rear driveshafts were capped off securely. This unit bolted straight up with out fault and made everything as easy as it should be. As an automotive technician I see a lot of poor quality components, which is not the case here. Everything about this product and experience was to the utmost quality and I would definitely recommend this product and company to anyone. Do not second guess yourself on this purchase. It is well worth the money. 10/10 would purchase again
Note: I have not put any real mileage on this unit since the install, this is strictly my first impressions of this product
   transfer case, best value!, November 23, 2018  By Anonymous (Escapees, TX)(Verified)
I have had this new transfer case installed for over a year now. It has performed flawlessly! Not a leak, works great. This was the easiest install ever, went in great, stopped the noises and clunks from a leaking case and worn out transfer case. Would recommend this unit to anyone and everyone!
   Perfect Fit, October 1, 2018  By Anonymous (GRande Prairie)(Verified)
Quick Shipping, perfect fit, Great Quality, couldn't ask for anything better
   Duramax t case, June 26, 2018  By Anonymous (IVINS, UT)(Verified)
Great part
All the upgrades . Weill worth the $
Perfect fit no leaks etc . Very satisfied much better than stock g.m one
   Improved Tranfer Case, September 26, 2017  By Tom (Foster, VA)(Verified)
This case is an improved version of the OEM case. If GM had this case supplied with the vehicle, there would be no need to have to replace an inferior product. As typical of General Motors, they save a nickel, at the expense of the customer. Thanks to Merchant Automotive for product improvement.
   New Transfer Case, August 20, 2017  By JAMES (Boulder City, NV)(Verified)
The transfer case arrived in perfect shape. One nice touch was all but one of the wiring sheet metal attachments were included! Nice! Installed and I'm off and running. Truck is so much smoother. No transfer case "clunks" after stops. Not a lot of miles on it yet, but so far, I'm really pleased with the product.
   New 263XHD Transfer Case, August 1, 2017  By Bruce (Belen, NM)(Verified)
Transfer case works great. I already have over 3000 miles since I did the install. It is comforting to know that this item is NEW! I might also add that the staff at Merchant was/is very helpful and the whole ordering process was very thorough, and fast delivery. Good job and thanks again!