Even with its prodigious power and presence, the 2006 Cadillac Escalade had one big problem. It seems that the 4L60 transmission will prevent it from moving when the driver selected drive or third with the column shifter. So let’s take a closer look and find out why that’s happening.
What Transmission Do I Have?

The Problem
According to technical service bulletin 08-07-30-027, issued back in 2008, this problem is known to affect the following models:
2006 Cadillac Escalade
2006 Cadillac Escalade ESV
2006 Cadillac Escalade EXT
All models would be equipped with the 4L60E or 4L65E transmission.
So when the driver selected drive or third gear, the truck wouldn’t move. But when they shifted down to second or first, or up into reverse, the transmission would seem to work just fine. Of course you couldn’t go very fast having only reverse or second gear as your only options.
This whole problem boiled down to a failed 4L60 sprag assembly. This one way clutch mechanism lives deep inside the transmission and has a series of figure 8 shaped fingers (called sprags) that allow the input sun gear to freely spin in one direction. When torque is applied in the opposite direction, the sprags will prevent the input sun gear from turning, which will allow a new gear to be selected.
The Solution
Unfortunately, this is not a cheap problem to fix. It requires the complete disassembly of the transmission just to get to the sprag assembly. And at that point, it will make the most financial sense to either rebuild or purchase a remanufactured 4L60 transmission with a warranty.
How much is it going to cost to fix my transmission?
Unfortunately, the problem described here is going to require the removal and disassembly/partial disassembly of your transmission. Given the labor time that will be involved to remove the transmission from your vehicle (this is not a simple task), most repair shops will recommend that you go ahead and rebuild the entire transmission while it’s out. Since they already have to tear it down, it sort of makes sense to spend the extra money to do that. After all, you should get a lot more mileage out of your transmission once it’s rebuilt. And since they’ve already got the transmission apart, might as well, right? Well let’s take a closer look and find out.
Things you’ll need to think about before getting a transmission rebuild
Who is actually doing the work? – Years ago, automatic transmissions were fairly similar in their design. But now, each manufacturer’s take on automatic cog swapping can be so unique that it would give NASA scientists a headache trying to keep up with the differences. That’s why taking your modern vehicle in for a transmission rebuild can often yield different results each time.
There are many qualified mechanic’s out there who can do a stellar job rebuilding a transmission. However finding those mechanics is often a hit-or-miss situation. This leaves you reliant on your particular technician’s level of experience working with your particular type of transmission. Plus there are no standardized quality control checks at a mechanic shop. So if the technician doesn’t torque a bolt exactly to spec, or misses a gasket that isn’t properly seated, you could literally be paying for that mistake in the long run.
Everything might not be fixed – Most mechanics and transmission repair centers don’t have the equipment necessary to perform a thorough inspection on hard parts like gear sets, clutch drums and valve bodies. This means that your rebuilt transmission could actually have small cracks in key parts that aren’t visible to the naked eye. As time and mileage progress, these cracks can grow and create an even larger problem. Similarly, a slight warp in the valve body can seriously impact shifting performance over time. So at the end of the day, you may be spending several thousand dollars on a ticking time bomb.
You’re the test driver – Most transmission repair shops and mechanics will only put a few miles on your vehicle to make sure the transmission works. But it’s not uncommon to experience transmission problems during the break-in period, which can be annoying, time-consuming and potentially dangerous. If you’re going to spend several thousand dollars getting your transmission repaired, you shouldn’t have to be inconvenienced by more transmission problems.
Warranty – Although most mechanic shops and transmission repair shops will warranty their work. That coverage is usually only good at the shop or franchise that did the work. If you travel out of town and suddenly experience transmission problems, you’ll be on the hook for any transmission repairs unless you pay to have your vehicle towed back to the shop that did the work in the first place.
Is a transmission rebuild worth it?
If you plan to keep your vehicle for as long as possible, then getting a transmission rebuild is certainly a viable option. However, a remanufactured transmission is a much better alternative. You’re getting as close to a brand-new transmission as it is possible. Companies like Street Smart Transmission also modify the transmission to correct all of the factory design flaws, allowing you to get a much longer service life from the transmission. You also get a 3-year/unlimited mile nationwide warranty, which allows you to get necessary repairs performed at any licensed repair shop of the country. So in terms of value for the money, a reman transmission might be the better way to go.
Why a remanufactured transmission might be a good option
While you might not be able to buy a brand-new transmission for your particular vehicle, a remanufactured transmission is a terrific alternative. They’re completely reengineered from the ground up and put together on a factory assembly line. They often contain a lot of upgrades over their stock form, which means that many of the design flaws that result in premature failure of components, can be eliminated. This can give a reman transmission a much longer service life than it originally had.
Remanufactured transmission companies like Street Smart Transmission put each of their reman transmissions through a rigorous build process that ensures a quality product every time. It begins with nearly 100 trained technicians that specialize in different aspects of the build process.
Once the build is complete and it passes the final quality control inspection, the newly remanufactured transmission is sent to the dyno room, where it’s tested on a special dyno machine using a proprietary software program called C.A.R.S. (Computer Aided Real-world Simulation). This cycles the transmission through a number of real-world driving situations, to ensure that it performs according to the factory specs. It also helps to break in all of the friction components, that way it’s completely tuned and ready to go once it’s installed.
Warranty – One of the benefits of buying a remanufactured transmission vs. a rebuilt transmission is the warranty. Street Smart Transmission for example, covers all of their reman transmissions with a 3 Year/Unlimited Mileage Nationwide Warranty (there is a mileage restriction for commercial vehicles). This covers parts and labor for transmission repairs performed by any licensed repair shop in the country. It’s also completely transferable if you ever decide to sell the vehicle. Compared to a mechanics warranty on a transmission rebuild, a remanufactured transmission warranty offers superior financial protection.
What Transmission Do I Have?

So is a remanufactured transmission worth it?
If you plan to keep your vehicle for as long as possible, then getting a rebuilt transmission is certainly a viable option. However, a remanufactured transmission is actually a much better alternative in the long run. You’re getting as close to a brand-new transmission as possible. Companies like Street Smart Transmission also modify the transmission to correct all of the factory design flaws, which allows you to get a much longer service life from the transmission. So in terms of value for the money, a reman transmission might be the better way to go. To learn more about the remanufactured transmission for your vehicle, click here.