Merchant Automotive 10603 261XHD Transfer Case

PART# 10603 | SKU ME10603
★★★★★ ★★★★★ 5.0 (2 Reviews)

Vehicle Fitment For:
2001-2007 GM 6.6L Duramax LB7/LLY/LBZ (With Floor-Shift Operation)

See full application list below
$2,249.95

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Description

Don't let pump-rub issues take down your 2001-2007 GM 6.6L Duramax LB7/LLY/LBZ, upgrade to a Merchant Automotive 10603 261XHD Transfer Case. Merchant Automotive addresses the common issues in the factory floor-shift transfer case, making their 261XHD a more durable and reliable choice when looking to upgrade or replace your already damaged unit.

Merchant Transfer Case Pump Upgrade
The GM transfer case use a gear pump inside the case that is driven off the mainshaft. This pump forces oil to the planetary as well as the drive sprocket sleeve. The 5 tabs around the housing fit into the spots in the rear housing are what positions the pump. Over time, the pump can start to wear on the rear housing. This is commonly referred to as pump rub. Each transfer case includes the Merchant Automotive Pump Upgrade to alleviate these "Pump Rub" issues.  

Magnetic Drain Plug
Help extend fluid life, and the life of your transfer case with the Merchant Automotive magnetic drain plug. The drain plug catches debris instead of circulating it through the case. Also included is a fill plug made of high strength corrosion resistant stainless steel. 

Merchant Automotive Transfer Case Oil
The included Merchant Transfer Case Oil is specially formulated for your GM transfercase to reduce wear, increase shifting performance, increase component efficiency, and increase driveline performance by reducing clutch chatter. 

Features:

  • NEW 261XHD Transfer Case
  • Upgraded For Durability & Reliability
  • Includes Transfer Case Pump Rub Fix
  • Ships With Merchant Transfer Case Oil
  • Includes 2-Quart Bottle Of Transfer Case Oil
  • Magnetic Drain Plug - Captures Small Debris
  • Brand New - No Core Charge
  • 2 Year / Unlimited Mileage Warranty

Note: 
For trucks with Floor-Shift transfer case operation. If your truck has a Push-Button transfer case operation, see Merchant Automotive 263XHD Transfer Case (Part # 10604).
Encoder motor is not included.
Transfer Case will be shipped with a 2 Quart (64 fluid oz.) bottle. The transfer case WILL NOT BE FILLED WHEN RECEIVED. One Transfer Case will use 64 fluid oz. You MUST fill the transfer case before operating the vehicle or severe damage to the new transfer case will result.
Manufacturer Warranty*:
2 Year / Unlimited Mile

Instructions & Tech Info

Installation Info

ME10603 Installation Video

Reviews For Merchant Automotive 10603

Overall Rating
5.0/5
2 Reviews
Rating Snapshot
5 ★
2
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Verified Buyer
★★★★★ ★★★★★
Merchant Auto Transfer Case for 03' Silverado
David (Front Royal VA) | August 23rd, 2025
The transfer case seems solid. Shipping was fast and there is an incentive to return the core to get a gift card for future needs. All good.
Verified Buyer
★★★★★ ★★★★★
Merchant Auto Transfer Case
Shawn (Kenosha, WI) | October 7th, 2021
Fast shipping! Of all the parts I’ve ordered for my truck, the lead time and shipping on this part was the quickest. It’s being installed now, I’ll update my review down the road.
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Specifications For Merchant Automotive 10603

MPN 10603
SKU ME10603
ID 35460
Manufacturer Name Merchant Automotive
Shipping Weight 89.00 lb.
Shipping Length 12 in.
Shipping Width 20 in.
Shipping Height 12 in.
Fuel Type Diesel
Manufacturer Warranty* 2 Year / Unlimited Mile
Prop 65 Prop 65 WarningWARNING: Cancer & Reproductive Harm - P65Warnings.ca.gov
Internal L2R2

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Product prices marked with an * may require additonal fees, such as a core charge, which will be displayed in the cart.