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Should the speedometer cable spin freely in the transmission?

Myasylum

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I just bought new autometer gauges that came with a new speed sensor. It will not calibrate. I checked down below at the transmission and the "cable" just spins freely. The stock speedometer didnt work before either, I assumed it was the speedometer, perhaps it's the speedometer gear in the transmission not spinning?

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If it spins freely, then the speedometer gear is not engaged with the transmission gears. As @4mulas said check that first. Also the speedometer gear has to be clocked correctly for the gear to engage.
 
Here you go! How does this get clocked correctly?

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I think it's explained in the service manual. I insert it back into the transmission and rotate the assembly until it no longer turns freely, then I look at the marks on the outside of the assembly and continue to rotate until it lines up with a mark on the transmission case. It's been a lot of years, so this is by my memory.
 
Count the teeth, the housing shows multiple choices of tooth counts. Little arrow on the tail shaft housing at 6 o’clock to line it up. Is it just the picture the teeth look funny on the output shaft.?
 
The outer body of the speedometer pinion holder has three ranges of tooth counts. Line up the slot nearest the appropriate count number and lock the housing down.

A spinning cable could also mean a broken cable.

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