The vehicle is powered by the 4.6 liter V8 engine, RPO LH2 or the 4.2 liter V8 engine, RPO LC3. Motion is transferred from the engine crankshaft/flywheel through the driveline support, propeller shaft, assembly to the 5L50-E or 6L80 automatic transmission. The splined output shaft of the transmission drives the pinion, which in turn, rotates the ring gear and differential case assembly. The limited slip differential distributes torque/power to the rear wheels via individual axle shaft assemblies. The limited-slip differential is of a conventional separator plate and friction disc type design.

The differential housing, side covers, pinion housing, and differential case halves are constructed of cast aluminum. The internal components incorporate a hypoid gear set, ring and pinion, carrier assembly, and pinion housing assembly. The pinion is supported in a pinion housing by tapered roller bearings. The pinion is positioned rearward of the ring gear centerline.

Pinion position, ring gear position, and carrier bearing preload are determined by shimming procedures.

All models have an 8 inch ring gear. Each ring gear has specific setup dimensions, A1 and A2 values, stamped onto the side area of the gear. The A1 and A2 values are unique to each ring gear/pinion and are determined during the manufacturers gear/pinion noise and vibration setup and testing.

The differential assembly is available in 2 gear ratios. The 2.93 ratio axle is standard. The 2.56 ratio axle is for the XLRV.