Rebuilding a transmission requires a clean and organized working environment. A garage with a large workbench to put all the pieces and parts is best because each part will need inspected and cleaned or possibly replaced. Having enough room to lay everything out will help keep you organized throughout the rebuild. The Ford E40D transmission was introduced in 1989 and was Ford's first fully electronic transmission. The E40D is the transmission you will find in most Fords today.
Raise the vehicle. Secure the vehicle with jack stands and place blocks of wood behind the rear wheels. Disconnect the front and rear driveshafts. Support the transmission with a transmission jack while disconnecting the transfer case and shift linkage. Remove the drainage screw in the bottom of the transmission pan to drain the fluid.
Disconnect the transmission by removing the six bellhousing bolts that connect the transmission to the engine. Lower the transmission on the transmission jack, roll it slowly from under the vehicle and life it onto a clean, dry workbench.
Following the instructions in the repair manual, disassemble the transmission. Inspect the housing for cracks and wear once you have all the pieces removed and laid out on your workbench. Replace the planetary gears, overdrive pinion, forward drums and clutches.
Install a shift kit for smoother shifts and no shift overlap. If not installing a shift kit, continue to replace all seals, gaskets, bands, clutches and gears with the new parts from the transmission rebuild kit. Clean all parts not being replaced. If a part looks damaged, don't hesitate to track down a rebuilt or new part to replace it.
Install a new torque converter. The torque converter always needs replaced during a rebuild as it gets the most wear and heat while working between the engine and the transmission.
Attach the rebuilt transmission to the newly installed torque converter. Reattach the transfer case and linkage to the transmission. Lower the vehicle and fill the transmission with approved automatic transmission fluid per your owner's manual.
