GMC Recalls Sierra and Yukon Models Over Defective Transfer Case Issue

General Motors has issued a new safety recall covering certain units of the GMC Sierra 1500, GMC Yukon, and GMC Yukon XL after discovering a transfer case defect that may cause either the front or rear wheels to lock unexpectedly on the road.

The recall carries GM reference number N262557620 and National Highway Traffic Safety Administration campaign number 26V289. In total, 66 vehicles are affected across several Chevrolet, GMC, and Cadillac models. GM also said one replacement transfer case installed in an older full-size SUV or truck may also contain the defect.

According to documents filed with federal safety regulators, the issue affects certain 2026 GMC Sierra 1500, Yukon, and Yukon XL models equipped with four-wheel drive or all-wheel drive systems, along with select 2018 through 2020 full-size SUVs that may have received replacement transfer cases.

GM says the problem comes from a missing oil pickup tube inside the transfer case. Without proper lubrication, internal bearings may wear out prematurely, eventually causing the transfer case to fail. In some situations, that failure could suddenly lock the wheels while the vehicle is moving.

The automaker traced the issue to supplier Magna Powertrain de México – Ramos, where standardized assembly procedures and error-detection protocols reportedly were not properly followed.

If the front or rear wheels lock while driving, motorists could lose control of the vehicle and increase the risk of a crash. GM noted that drivers might hear a grinding noise before the problem occurs. The company said it has received four field complaints linked to the defect, although it is not aware of any crashes or injuries related to the issue at this time.

Dealers will inspect the transfer case and replace it if necessary. GM is advising owners not to drive affected vehicles until repairs are completed. The company also said it wil assist customers with towing their vehicles to dealerships if needed.

Affected Component

• Transfer case assembly

Vehicles Included in the Recall

• Chevrolet Silverado 1500 (2026)
• Chevrolet Tahoe (2016-2017, 2019, 2026)
• Chevrolet Suburban (2015, 2017-2020, 2026)
• GMC Sierra 1500 (2026)
• GMC Yukon (2019-2020, 2026)
• GMC Yukon XL (2018-2019, 2026)
• Cadillac Escalade / Cadillac Escalade ESV (2015, 2026)

GM says 66 vehicles in total are included in the recall campaign.

Owners are encouraged to check whether their vehicle is affected by entering their VIN through official GM recall tools, contacting a local dealer, or calling GMC customer support directly.

Recall Contacts

• GM recall number: N262557620
• NHTSA recall number: 26V289
• GMC Customer Service: 1-800-462-8782