1982-86 Tercel & 1987-88 Tercel Wagon 2WD

Steps 1 through 9 allow separation of transmission case from differential. If differential requires replacement, refer to step 10 for procedure.
1. Disconnect battery ground cable and drain coolant system.
2. Disconnect upper radiator hose from engine, then remove air cleaner inlet duct.
3. Disconnect steering column intermediate shaft, then drain transaxle oil.
4. Disconnect exhaust pipe from manifold. Disconnect gear shift control rod and shift lever housing rod.
5. Disconnect speedometer cable and back-up lamp electrical connector.
6. Support transmission with suitable jack, then remove rear support.
7. Remove transmission case to differential attaching bolts.
8. Install four 8 mm x 1.25 mm bolts into four equidistant bolt holes on differential side, then install four of the bolts removed in step 7 into same holes on transmission case side. Tighten bolts equally until snug.
9. Separate transmission case from differential by carefully tightening bolts on the transmission case side, then remove transmission case.
10. If necessary, remove differential from vehicle as follows:
a. Support engine, then disconnect clutch cable and remove starter.
b. Remove upper differential housing to engine attaching bolts, then remove both driveshafts.
c. Remove stiffener plate, if applicable, then the lower differential housing to engine attaching bolts.
d. Lower differential and remove from vehicle.
11. Reverse procedure to install. Lubricate input shaft with suitable grease before installing transmission case. Torque transmission case to differential attaching bolts to 8-11 ft. lbs., and differential housing to engine attaching bolts to 37-57 ft. lbs.