The Novak Guide to Rebuilding the Jeep / IH Dana 18 Transfer Case 31/12/2018 20(57

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The Novak Guide to

Rebuilding the Jeep / IH Dana 18 Transfer Case
The Dana Model 18 transfer case makes for an enjoyable
and satisfying rebuild project. Individuals can obtain
outstanding results with some information, good parts, and
pride in their work. A non-leaking, quiet and cooler running
Dana 18 can be acheived with modern bearings, better
seals and gaskets, improved lubricating fluids and a
specially hardened intermediate shaft.

Preparation for the Rebuild

The Dana Model 18

Rebuilding Tools & Supplies

You probably already have most of the tools required to build a transmission, including wrenches,
ratchets, screwdrivers, scrapers, hammers, etc. Additional tools and supplies that may be less common:

A urethane or plastic mallet

Bearing puller (helpful, but not required for a T90 rebuild)
Pliers, snap ring, bevel (Eaton) style
Large arbor press or hydraulic press
Transmission assembly grease. Never use axle or conventional grease as it will not dissolve into the fluid and plug
passages to the ruin of your transmission. Choose something tacky, which will allow you to stick parts together. We use
Smart Blend Synthetic Assembly Lubricant #5500. Petroleum Jelly is a decent alternative. Store your assembly lube in the
fridge to increase the tackiness for loading those pesky needle bearings. Your assembly grease will melt into the gear oil
upon first operation of your fresh transmission.
Gasket sealants: RTV (Permatex Black or Grey, The Right Stuff, Aviation Gasket Sealer, etc.)
Safety glasses or goggles. Take a poppet ball, snap ring, solvent or case-hardened shaft / gear fragment in your eye and
you’ll become a convert

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Cleaning

You may choose to pressure wash the transmission prior to putting it on your bench. If you plan on doing
a partial rebuild (upper end / mainshaft changeout) only, getting it as clean as possible prior to
disassembly is important. If you do this, do not allow the transmission internals to be in contact with
water for any real length of time.

If you are going to be solvent bathing your transmission and its disassembled components or hot tanking
the case, you may forego the pressure wash. Scrape as much grease off the case as you can and then
clean up the bench. Don’t worry too much about getting the outside of the case completely clean because
it will be completely disassembled and cleaned. Your spouse’s dishwasher is actually a decent option, but
we’ll advise that the interpersonal consequences could be quite heavy.

Separating the Model 18 Transfer Case & Transmission (without Warn

Overdrive option)

Remove the five bolts on the sheet metal power take-off cover on the rear of the transfer case and
remove the cover. Remove the cotter pin in the nut at the center of the input gear and remove the nut.
Cottered nut uses 1-5/16" socket, Nylock® nut is 1-1/4". Remove the gear from the output shaft taking
care not to drop the hub washer or nut into the transfer case. The transfer case can now be separated by
removal of the five retaining bolts. One bolt is on the front side near the front driveshaft yoke.

Separating the Model 18 Transfer Case & Transmission (with Warn

Overdrive option)

If the Model 18 is equipped with Warn overdrive, it must be removed before

the transfer case can be removed from the transmission. To accomplish this,
disengage the Warn overdrive. Remove the shift linkage from the O/D. Remove
the five bolts that hold the O/D to the transfer case. The four bolts on the
back cover of the O/D do not require removal. The O/D housing can now be
pulled straight back for removal. If necessary, the housing can be tapped back
(while pulling on by hand) with a plastic faced hammer or block of wood. Be
careful, the housing is aluminum and is easily damaged. Do not attempt to pry
the overdrive off. Note that bearing seat constriction may prevent easy
removal. In this case, remove the rear cap of the overdrive. Attach a slide
hammer to the six-spline tube and tap it rearward. With the unit now
separated, continue as indicated.

With the housing removed, the hub assembly is now accessible. Use a light to look in the hole in the
center of the hub assembly. You should see a square shaped flat wire lock ring in a groove. A thin pair of
long nose pliers can be used to squeeze the ends of the lockring together for removal. The lockplate (or
washer, in common parlance) that was retained by the lockring can now be removed. With these removed,
use a regular 1/2" drive socket extension to remove the special hub retaining nut. This has a regular right
hand (counter-clockwise to loosen) thread. When the hub nut threads disengage, the hub can be removed
from the output shaft.

The transfer case can now be separated by removal of the five retaining bolts. One is on the front side
near the front driveshaft yoke.

Model 18 Transfer Case Disassembly

On two-lever transfers, the lock screw, shifter pivot pin, shift levers and anti-rattle springs will have
already been removed when the transfer case was removed from the vehicle. On single-lever shifters,
remove the shifter links taking note of their relationship for reassembly.

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Remove both front and rear drive shaft yoke nuts and washers. A large pipe wrench or bench vise will
hold the yokes from turning while the nuts are removed.

Pull off the yokes using a two-leg gear puller of suitable size.

Remove the bottom cover (oil pan).

Remove the bolt and retainer plate from the intermediate shaft.

Remove the four bolts holding the rear bearing cap to the case and remove the cap as an assembly with
the speedometer gear. The parking brake backing plate is also retained by these bolts on Jeeps so
equipped. Take care with the adjusting shims that are between the cap and case.

Use a soft drift to drive the intermediate shaft out (towards the rear of the case). Shaft is larger on rear,
driving out forward will damage the case. Remove intermediate gear, thrust washers, bearings from case.

Remove the plugs, springs, and poppet balls from both sides of the front output bearing cap. Engage front
wheel drive (left shaft forward).

Remove the five bolts holding the front output bearing cap to the case. Tap the cap with a soft hammer to
break it loose and remove it as an assembly with the shaft, shifter clutch, shifter fork and shift rod. Be
careful not to lose the little bullet-shaped interlock that "floats" in the passage between the shift rods. The
front bearing cap assembly does not usually require disassembly unless the Jeep has been used very hard
in 4WD (such as plowing snow) or has not been equipped with free-wheeling hubs. If the shifter shaft
seals are to be replaced, the cap must be disassembled to remove the seals. To do this, loosen the set
screw on the shift fork and remove the fork, shifter clutch, and shift rod. Remove the snap ring from the
housing and remove the bearing and front output shaft.

Using a soft hammer or the end of a block of wood, drive the output shaft towards the rear of the case to
remove the rear bearing cup from the case. Drive a large screwdriver or similar shaped tool between the
front bearing and the output gear to separate the gear enough to remove the snap ring from its groove in
the shaft. Never use the gear to pry against when removing this bearing. It will chip a tooth if this is
done. When this snap ring is removed from its groove and rests on the forward part of the output shaft,
the shaft can be pulled out of the gears towards the rear of the case. The gears, (low slider and output)
thrust washers, and snap ring can now be removed from the case.

If necessary, the rear bearing cone can be removed from the shaft with a drift and hammer or by inertia
caused by striking the end of the shaft on the end of a block of wood. When the snap ring is removed
from the groove in the output shaft it should never be re-used. Always replace with a new snap ring, as
included with our intermediate and master rebuild kit.

Remove the setscrew and remove the shift rail and fork from the case taking note of its position so it may
be reinstalled in the same relationship as it was removed. We use the shank of a screwdriver, inserted
through the end hole of both shift rails and twist / pull the rails out in alternating manner.

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1. Companion Flange and Oil Seal 25. End Yoke

49. Cone and Rollers
2. Emergency Brake Drum 26. Oil Seal Gasket
50. Output Shaft Bearing Cup
3. Emergency Brake 27. Bolt
51. Speedometer Drive Gear (6-t)
4. Brake Operating Lever 28. Lockwasher
52. Needle Bearing
5. Bearing Cap Oil Seal 29. Shift Rod
53. Bearing Spacer
6. Brake Operating Lever Stud 30. Front Wheel Drive Shift Fork
54. Intermediate Shaft
7. Rear Bearing Cap 31. Underdrive and Direct Shift Fork
55. Drain Plug
8. Rear Bearing Cap Shim Set 32. Filler Plug
56. Bottom Cover Gasket
9. Bolt 33. Main Shaft Gear
57. Main Shaft Nut
10. Lockwasher 34. Main Shaft Washer
58. Transfer Case Bottom Cover
11. Bolt 35. Thrust Washer
59. Speedometer Driven Gear
12. Transfer Case Rear Cover 36. Intermediate Gear
Sleeve
13. Rear Gasket Cover 37. Bearing Shaft Snap Ring
60. Speedometer Driven Gear (15-t)
14. Intermediate Shaft Lock Plate 38. Output Clutch Shaft Bearing
61. Speedometer Driven Gear
15. Transfer Case 39. Companion Flange Nut
Bushing
16. Shift Rod 40. Plain Washer
62. Backing Plate Gasket
17. Poppet P1ug 41. Output Clutch Shaft
63. Bolt
18. Poppet Spring 42. Output Clutch Shaft Gear
64. Bolt
19. Poppet Ball 43. Output Shaft Gear Snap Ring
65. Bolt
20. Shift Rod Interlock 44. Thrust Washer
66. Bolt
21. Bearing Cap Gasket 45. Output Shaft Gear
67. Lockwasher
22. Front Bearing Shaft Cap 46. Output Shaft Sliding Gear
68. Nut
23. Breather 47. Pilot Bushing
69. Output Shaft Felt Seal
24. Shift Rod Oil Seal 48. Output Shaft

Model 18 Inspection

Wash all parts thoroughly in a suitable solvent to facilitate inspection. Check the case for cracks that may
run from the intermediate shaft bore down to the bottom cover surface or from the output shaft bearing

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bores down to the bottom cover surface. If cracks are present here they will usually be of the "hairline"
type. A very clean transfer case and a magnifying glass are advisable for inspection. Unfortunately, if the
case should be cracked, it must be replaced as there is really no satisfactory way to repair it.

Check the intermediate shaft for signs of wear. The 3/4" and 1-1/8" shafts will almost always need
replacing. The 1-1/4" shafts hold up longer but any sign of rollers working on the shafts should be cause
to replace, not only the shaft, but the rollers and thrust washers as well. Our transfer case rebuild
kits include these parts. The intermediate shafts we make are the only source we know of high quality
transfer case shafts. Shafts from other sources are imported and are extremely poor quality, low grade
steel, shallow depth of hardness, etc.

Inspect the bore of the intermediate gear for roughness, pits, and wear. Use your thumbnail to judge the
presence of an objectionable bearing wear ridge in the bore.

Check the condition of the output shaft and the inside of the output shaft drive gear for signs of galling
caused by running in low range with the transfer case low on oil. Replace if necessary.

Check the output shaft roller bearings and cups for pitted and spalled surfaces. Replace as necessary.

Check the size of the bronze bushing in the bore of the rear output shaft. This pilots the front output
shaft and may be in poor condition due to a bent or badly worn (slip splines) front driveshaft. This
bushing bore is .628" when new. If over .630" it should be replaced. If replaced, it may require reaming
or honing to the .628" size as this type of bushing can compress undersize when installed. We can install
this new bushing for you for a nominal fee. Note that all Novak master rebuild kits for the Dana 18
include this new bushing.

Inspect the gear teeth for chips and pits, particularly on the drive
When filling your Dana transfer case
face teeth. Small pits from rust due to moisture condensation should
with gear oil, we recommend that you
not present a problem. select a conventional mineral oil or a
para-synthetic in lieu of a full
Polish any rust off the exposed ends of the shifter rails so the shafts synthetic oil. Properly assembled
manual gearboxes do not have the
won't ruin the new seals when installed. Check to see if the shifter
thermal strains seen by combustion
forks are bent by sliding them on the shaft—the ends should be at engines or hypoid gears. Synthetic
right angle to the shaft. fluid in these gearboxes, while not
harmful, is probably an economic
waste.
Install new output shaft oil seals in the front and rear output caps.
Install new shifter shaft seals if the old ones are leaking. These are Hypoid gear oil is sulphurized higher
difficult to remove without the proper puller. Trying to pry them out than transmission oil and can be
mildly corrosive to the non-ferrous
will usually damage the bore allowing oil to leak out around the
alloys used for bushings and thrust
outside of the new seal and the bore. Care taken here will help washers in these transfer cases.
eliminate oil leaks.
A 75W-90, API-GL5 or MT-1 rated fluid
is very good.
Use a smooth file to deburr all the gasket surfaces on the case, front
output cap and rear output cap.

Carefully clean the adjusting shims for the output shaft bearings using ScotchBrite or similar abrasive.
New shim kits are available (typically supplied with our gasket kit) and are automatically include in our
master rebuild kits.

Model 18 Reassembly

The assembly process will be a reverse of the disassembly. Watch for the following as assembly
progresses:

The front output cap gasket thickness is a factor in the end-play adjustment of the rear output shaft. This

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is because the front bearing cup seats against the bore in the front cap. The front cap must be
reassembled and installed on the case along with both shift shafts and forks. If the shift fork retaining
screws were drilled for safety wire, be sure to re-wire. The front output bearing cup is installed in the
case and seated firmly against the front output cap.

Be sure not to leave out the bullet shaped

interlock pin that "floats" between the shift rods
in the front output cap, unless you wish to
convert to true twin-stick operation, which runs
the risk of an operator cross-shifting the transfer
case if not cognisant of the situation.

Install the low range sliding gear and output

gear in the case with the shift groove on the
gear facing to the rear and engaged on the shift
fork. Install the output shaft part way through
these gears, then install the output thrust
washer (tangs in slots on shaft) and a new snap
ring followed by the front bearing cone. It takes
patience and caution to make this assembly
sequence. The snap ring must be worked back
on the shaft along with the front bearing cone
until the snap ring will enter its groove on the
shaft. The front bearing can now be seated
against the thrust washer.

The rear output bearing cone can now be

installed on the shaft followed by its bearing cup
which can be tapped into the case until it seats
lightly against the rollers of the cone. This will
position the bearings for adjustment procedure
that follows.

Output Shaft Endplay

Hold the rear output cap on the rear bearing and

measure the gap between the cap and the case with a
feeler gauge. Add .010 to the gap thickness to obtain
the thickness of the shim pack for the initial setting.
(Note that the shims are available in thickness' of .003,
.010, and .031.)

Install the initial shim pack and rear cap and tighten the
four rear bolts to 30 foot pounds. The output shaft,
gear, and bearings assembly must now be moved
rearward to seat the rear bearing in the rear cap. The
easiest way to do this is to use the end of a block of
wood and a hammer and rap the rear cap (not the
shaft). The inertia of the impact will seat the rear
bearing. Failure to fully seat these bearings is a common occurrence, and stacking an unholy number of
shims up to get endplay is not the answer. It may sometimes be necessary to install the yoke, speedo
drive spacer, etc. and torque the yoke nut to fully seat this assembly.

Install the initial shim pack and rear cap and tighten the four rear
Important Considerations for the

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bolts to 30 foot pounds. The output shaft, gear, and bearings Novak O-ring Seals

assembly must now be moved rearward to seat the rear bearing in When installing the Novak
the rear cap. The easiest way to do this is to use the end of a block intermediate shaft, install the leading
of wood and a hammer and rap the rear cap (not the shaft). The o-ring after the shaft has entered the
rear bore and then apply a coat of
inertia of the impact will seat the rear bearing. Failure to fully seat
grease to ease its installation into its
these bearings is a common occurence, and stacking an unholy own bore at the front of the transfer
number of shims up to get endplay is not the answer. case. Install the second o-ring and
grease it as well. This is to minimize
the risk of damaging the o-ring seal
Attach a dial indicator to the case with the contact tip of the
during this installation process.
instrument on the end of the rear output shaft. Push and pull gently
on the shaft by hand while reading the end play on the indicator.
(Factory spec for end play is .004 to .008 but a better job results if .002 to .006 is maintained. This is an
important adjustment and cannot be done by eye or feel. Add or subtract shims as necessary to obtain
the desired end play. Be sure to seat the bearing as outlined previously each time the shim pack is made
thicker.

After the proper thickness shim pack has been established, remove the rear cap and shims and apply a
thin coat of shellac or sealant spray. Reassemble before the spray dries and torque the bolts (30 ft. lbs.),
and recheck end play, which should be the same as before (.002 to .006).

Install the intermediate gear, bearings, and thrust washers in the case. Cage type bearings of 3/4" and 1-
1/8" diameter are simple to install and should be either lightly greased or lubricated with gear oil at
assembly.

Uncaged rollers (quantity 48) and spacers

(quantity 3) used with the 1-1/4" shaft are best
retained in the gear bore with frozen petroleum
jelly or Smart Blend Synthetic Assembly Lubricant
#5500. The thrust washers can be "glued" to the
faces of the gear with this methodalso. The gear,
rollers, spacers, and thrust washers can be easily
positioned in the case to accept the intermediate
shaft which is installed from the rear of the case,
tapped into position, and safetied with the lock
plate and bolt. (Note that this gear and shaft
may be removed from the transfer case for
service while the case is in the vehicle. This is
easily accomplished by removing the bottom
cover [oil pan] from the transfer case.) Never mix
old and new bearing rollers. There is enough
difference in size to cause the new rollers to
carry a greater portion of the load. This will cause Let's all just be honest with ourselves and
premature failure of all the rollers. admit that this is the coolest Dana 18 PTO
cover available. It's thicker plate aluminum
Cap of the Dana 18 with it's rear PTO cover and construction resists warpage like the thin,
it's bottom cover and their respective gaskets and factory steel versions. It is media tumbled,
your preferred RTV (we like the Right Stuff - RTV anodized and machine engraved.
posing as a can of CheezWhiz™ at your auto
parts house...). Lay down only a thin layer of silicone on each side of the gasket. Solvent clean the steel
metal mating surfaces to remove any oil. Tighten the bolts by hand just enough to barely start to squeeze
the RTV. Wait several hours and then tighten slightly more, using a tiny wrench and minimal force.
Overtightening of the bolts is too common, and results in cover warpage and leakage.

Install new output yoke oil seals and install yokes. Torque to 175 ft. lbs.

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Check unit for freedom in all modes and ranges by hand turning.

Enjoy your improved Jeep.

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