On an automatic 1997 Jeep Cherokee with the inline 6 cyl 4.0L the neutral switch is combined with the Park and reverse switch. To repair the switch, unplug the harness from the top of the engine near the transmission dip stick. The switch is located on the passenger side of the transmission, right on the side. There is a bolt and a nut which must be removed, the bolt is for adjustment of the switch position and is near the top. The larger nut (Collet type) is near the bottom and is centered over an oval shaped shaft protruding from the transmission... BE WARNED!!!! these switches are VERY EXPENSIVE (~$160)!!!! so tread carefully and try not to break it. Mine was seized to the shaft and broke into about 8 pieces, luckily I have the know how to be able to repair them. You can free up the switch from the shaft with penetrating oil and pry against the loosened nut with a screwdriver while taping lightly on the shaft to back the switch off of the shaft. Inside the switch there is a problem where the grease gells over time and the wiper contacts stick away from the base contacts therefore they do not always make connection. Once you get the switch off in one piece, it is easily serviced by removing the screws on the back and slowly opening the case. Some of my screws were frozen and I had to break them off and drill out the holes, you may be lucky and get the screws out without this problem. When you have the switch apart I suggest you use a clean surface and put some cardboard down to catch any parts that fall out. Once open, you will see 2 copper wipe plates on the wiper arm, slowly remove them and under them you will see a spring for each side. Clean all the surfaces with brake cleaner or WD-40, you can burnish the contacts with a very fine 340 grit sandpaper. Once done reassemble putting a VERY thin layer of grease on the contacts to help prevent corrosion and allow the contacts to slide easier. Once you have put the module/switch back on make sure that the adjuster bolt is set in the right place... Put it on and make sure the reverse lights come on and it cranks in park. Tighten the adjuster bolt and put the nut back on and double check. NOTE: make sure you plug the harness back in or nothing will work lol. I want to add that the hardest part is getting the switch off. When you remove the Collet nut be sure to release it first by prying back the tabs on the retaining nut. (Note: when reinstalling, this nut is to be re-tightened to ONLY 5 INCH pounds!) After removal of the Collet nut, spray some parts buster or WD-40 onto the shaft area and let it sit. Put the Collet nut back on but not all the way tight and use a screw driver to pry the unit forward from the shaft SLOWLY!. Don't get carried away when it starts moving. When reinstalling put some never seize on the tranny output shaft in case you have to do this in the future.
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