1987-88 Tercel Wagon 4WD

Steps 1 through 10 allow separation of transmission case from differential. If differential requires replacement, refer to step 11 for procedure.
1. Remove battery ground cable.
2. Drain radiator upper tank, then remove upper radiator hose.
3. Remove air cleaner inlet duct.
4. Remove console, then using a suitable pair of long nose pliers, remove snap ring retaining shift lever, then remove shift lever.
5. Raise and support vehicle, then drain transmission lubricant.
6. Disconnect 4 wheel drive control linkage.
7. Scribe alignment marks, then remove rear driveshaft.
8. Remove exhaust pipe to manifold bolts, then remove exhaust clamp from transaxle.
9. Disconnect speedometer cable and back-up light switch wiring.
10. Separate transmission case from differential by using the following steps:
a. Remove transmission case to differential attaching bolts.
b. 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.
c. Separate transmission case from differential by carefully tightening bolts on the transmission case side, then remove transmission case.
11. 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, and 4 x 4 link, then the lower differential housing to engine attaching bolts.
d. Lower differential and remove from vehicle.
12. Reverse procedure to install. Lubricate input shaft with suitable grease before installing transmission case. Torque transmission case to differential attaching bolts to 18 ft. lbs., and differential housing to engine attaching bolts to 37-57 ft. lbs.