The MP3023 transfer case was built by Magna Powertrain, they bought out New Process Gear/ New Venture Gear in 2004. The MP 3023 is a two-speed active transfer case and has three different versions with 27, 29, or 32 splines depending on the transmission it was paired with. All versions are automatic electric shifts and are found on SUVs and light to heavy-duty trucks. The automatic shift function refers to the desired result when the driver turns the shift knob to put the vehicle into a specific drive mode. That is, when the driver turns the selector knob from 2 high to 4 high, auto, 4 low, or neutral, the 3023 transfer case responds by putting the vehicle into the desired drive range through electronic inputs.

The MP3023 transfer case began production in 2007 and was manufactured until 2019. It was used by different manufacturers for their 4WD vehicles for over a decade which means there are hundreds of thousands of vehicles with the MP3023 transfer case on the roads. In particular, this transfer case was paired with the 2ML70, 4L60E, 6L80E, and 6L90E transmissions. Most of the vehicles that carried these transmission/ transfer case combinations were the Chevrolet Avalanche, Chevrolet Silverado 1500, Chevrolet Suburban, Chevrolet Tahoe, GMC Sierra 1500, GMC Yukon, Cadillac Escalade, Dodge Durango, and the Jeep Grand Cherokee.

The most common of the MP3023 transfer case problems involves a rear-bearing snap ring located on the output shaft. The eyelet-type snap rings are made from a too-thin metal that breaks easily when the clutch applies its torque load. The solution is to replace the snap ring with a thicker type, but the entire transfer case has to be taken apart to reach the broken snap ring.

Another common problem is the internal oil pump is prone to failure due to a lack of pressure relief. If there's too much pressure or debris in the transfer case, the oil pump cover blows off and releases the oil contained within the MP3023 transfer case. The parts inside the transfer case become starved of oil and fail. The only solution is to replace the entire oil pump unit.

The control-shaft lever is another point of failure on the MP 3023 transfer case. One of the arms of the lever uses a roller bearing to ride on a cam to move the shift fork into position and applies the clutch pack. When the bearing and washer on the control-shaft lever wear down, the motor can't correctly position the control shaft and causes damage to the shift fork and cam assembly.

These are well-known MP3023 transfer case problems that are all resolved during the remanufacturing process. All of the weak parts are replaced with stronger versions for reliable and trustworthy operation once the transfer case has been remanufactured.