Start by checking the "Possible Causes" listed above. Visually inspect the related wiring harness and connectors. Check for damaged components and look for broken, bent, pushed out, or corroded connector's pins.
There is factory service bulletin with the following information:
The speed sensor signal may have become corrupted. Possible openings in the speed sensor wire insulation (twisted pairs) can allow water intrusion. Also, wire connections contaminated by water may result in short circuits and erroneous speed sensor readings. This most often occurs on the rear speed sensor circuit.
Correct problem by inspecting the wiring harness to the transfer case speed sensors. Completely inspect and test all wiring. Replace the affected twisted pairs.
The cost to diagnose the C0374 OLDSMOBILE code is 1.0 hour of labor. The auto repair's diagnosis time and labor rates vary by location, vehicle's make and model, and even your engine type. Most auto repair shops charge between $75 and $150 per hour.
The transfer case shift control module senses rear slip. After several attempts of applying torque to the front wheels, by activating the encoder motor, the transfer case still sees a difference in speed between the front propshaft speed sensor and rear propshaft speed sensor. The transfer case shift control module is unable to correct sensed wheel slip for 10 consecutive seconds.
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