Some shift mods and dual feed kits required the removal of a seal ring. So, it might not be wrong.Small update on the engine/transmission tear-down:
a little scrap metal cut to fit, welded and a can of paint, and the engine-stand serves as a transmission-stand
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What wasn't so fun, is what I discovered while further disassembling and inspecting the TH400 (build by B&M).
The rear bushing ate some metal, but thank god, the rear output shaft isn't damaged in any way. It seems that this got assembled in a dirty place with no respect for quality.
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And to ice the cake, there was a seal ring missing inside the main assembly.
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I will post updates as soon as I received the parts for the rebuild... One thing is for sure, B&M will never get any money from me ever again...