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Installation guide for the Pacific Performance Engineering (PPE) Stage 4 transmission kit for 2001-2005 Allison LB7/LLY 5-speed transmissions behind the Duramax. The kit is built to handle increased horsepower above factory specifications. Follow the steps carefully for a reliable build.

Download the Original PDF Manual

Applications

  • 2001–2005 Allison LB7 / LLY transmissions
  • 5-speed transmissions only
WARNING: This is a performance product that can be used with increased horsepower above and beyond factory specifications. Additional horsepower creates more stress on the drivetrain components, which could result in drivetrain failure. This kit should only be installed by a technician experienced in the rebuild of Allison transmissions.
IMPORTANT: Several steps in this kit apply to specific model years. Step 12 and Step 13a apply to 2001–2003 transmissions only (the TCC Limit and Lube Regulator were redesigned in 2004 — no change needed). Step 14b applies to 2004–2005 transmissions only. Read each step heading carefully before performing it.

C4 Clutch Modification

Step 1 — Disassemble the Rear Section

After the torque converter is removed, place the transmission into a holder or stand it up in a drain pan on the floor with the bell housing down. Then disassemble the rear section:

  1. Remove the rear extension housing as an assembly.
  2. Remove the park pawl pin, park pawl, and C5 return spring assembly.
  3. Remove the P3 sun gear and thrust bearing.
  4. Grasp the main shaft splines and lift straight up to remove the main shaft, P2 sun gear and spacer.
  5. Remove the P2 planet carrier and thrust bearing.
  6. Remove the C5 clutch pack and backing plate.
  7. Remove the P1 planet carrier assembly and thrust bearing — lifting up with a slight twisting motion leaves the P1 ring gear in place.
NOTE: Pay attention to the directional install of the Torrington bearing. Inverting bearings will result in extreme damage.

We recommend performing all C4 clutch modifications first.

Step 2 — C4 Clutch Pack

Remove the C4 retaining rings while compressing the backing plate, then remove the C4 clutch pack. Install the thrust bearing to the rear of the P1 carrier, retaining it with assembly gel, and install the P1 carrier into the P1 ring gear in the case. Lubricate and install the supplied C-4 piston with the air bleed hole in line with the top of the case at the 12 o’clock position (groove side up). Install the supplied C-4 clutch pack, starting with a Friction against the Apply Plate and alternating with Kolene® Steel.

PPE Stage 4 Allison Transmission Kit – C4 clutch pack components, case, and bearings
C4 clutch pack components — Torrington bearing, apply plate, Friction/Kolene® Steel plates, backing plate and retaining rings.

When installing the Frictions and Steels, align the slots in each plate with the holes in the Apply Plate at the 12 o’clock position. Install 6 Frictions and 5 Steels, then install and compress the C-4 backing plate. Install the Spiral Ring, then the Snap Ring — the gap in the Snap Ring should be at the 1:30 position, aligning with the wide gap in the case. Clearance should be from .065″ to .075″.

Reassemble the rear section, being sure to align the slot in the Sun Gear Spacer with the lube hole in the Shaft Shoulder when installing the extension housing. The housing will be spring loaded for the last ½″ above the case — gently pull down evenly with a speed handle until flush, then torque to 45 ft-lbs.

TIP: We recommend soaking the Frictions in ATF for 30 minutes prior to installation.

Valve Body Removal & Disassembly

Step 3 — Remove the Oil Pan

Remove the oil pan (12 × 13 mm bolts).

Step 4 — Remove the Valve Body

After a few years of service, wiring gets brittle. Carefully disconnect all electrical connections from the Valve Body. Remove the bolts, then wiggle the Valve Body to lift it off the dowels. Note the bolt colors and the long bolt location for reassembly.

CAUTION: Be careful not to lose the Manual Valve Link when removing the Valve Body.
PPE Stage 4 Allison Transmission Kit – valve body bolt map showing gold and black bolt locations
Valve body bolt map. Position “A” is where the long bolt goes. Note the gold bolt and black bolt locations for reassembly.

Steps 5–8 — Access & Drill the Separator Plate

  1. Step 5: Remove the tube.
  2. Step 6: Remove the Pressure Switch.
  3. Step 7: Separate the Valve Body to access the Separator Plate.
  4. Step 8: Enlarge the two holes on the Separator Plate with the smaller drill bit furnished (.125).
PPE Stage 4 Allison Transmission Kit – removing tube and pressure switch, separating valve body, and drilling the separator plate
Steps 5–8: remove the tube and pressure switch, separate the valve body, and enlarge the two holes on the separator plate with the .125 drill bit.

Trim Valves & Bell Housing

Step 9 — Replace the Trim Valves

Discard the original trim valves and the springs from the small end of the valves. Place new ball bearings, then the small spring, into the hollow end of each new trim valve — use transmission gel (or petroleum jelly) to hold the ball bearing in place. Insert the new outer springs over the small end of the trim valves, then install the assembly into the Valve Body. Don’t force them — a little wiggle and they will drop in. Install the outer spring, solenoid valves and solenoids as shown.

IMPORTANT: The outer spring must be installed in the “A Line up.” Valve A has a rib.

Step 10 — Remove Bell Housing Bolts

With the bell housing off the transmission, remove the 10 bolts in the bell housing. These bolts have O-Rings under the bolt heads.

Step 11 — Remove the Stator

Remove the 5 bolts from the rear, then lift off the stator and flip it over.

PPE Stage 4 Allison Transmission Kit – valve body trim valve layout, bell housing bolts, and stator removal
Steps 9–11: trim valve “A line up” layout in the valve body, the 10 O-ring bell housing bolts (front view), and stator removal.

Converter Relief & Flow Valves

Step 12 — Lube Regulator / TCC Limit Springs (2001–2003 only)

NOTE: This step is only for 2001–2003 Allison transmissions. The TCC Limit and Lube Regulator were redesigned in 2004 — no change needed.

Discard the original springs and install the New springs as shown. The retainer installs after the TCC Limit Valve and spring. The Lube Regulator Valve uses the Orange spring; the Converter Relief Valve uses the White spring with the End Plug and O-Ring.

Step 13a — Converter Relief Valve (2001–2003 only)

  1. Remove and discard the original converter flow valve, spring and end plug.
  2. Install the orifice cup plug in the smaller (narrow) end.
  3. Install the New Valve, 3/8″ Check Ball, Spring and New End Plug.
PPE Stage 4 Allison Transmission Kit – converter relief valve, lube regulator and TCC limit valve spring locations (2001-2003)
Steps 12–13a (2001–2003 only): Lube Regulator (Orange), TCC Limit Valve, and Converter Relief Valve (White) spring/plug locations, plus the orifice cup plug detail.

Step 14b — Converter Flow Valve (2004–2005 only)

  1. Remove and discard the original Converter Flow Valve, spring and End Plug.
  2. Install the New Valve, 3/8″ Check Ball, Spring, Shim and New End Plug. Reuse the pin.
Lockup oil pressure (A1-Lockup-BST “Hot Rod Allison” lockup boost valve): White spring = 170 ± 20 psi; Orange spring = 190 ± 40 psi.
PPE Stage 4 Allison Transmission Kit – converter flow valve and lockup boost valve assembly (2004-2005)
Converter Flow Valve assembly and the A1-Lockup-BST boost valve location. Step 14b (2004–2005 only): install the new valve, 3/8″ check ball, spring, shim and end plug.

Main Regulator & Rotating Module

Step 15 — Stator Support & Main Regulator Valve

Remove the Converter housing and Stator support assembly. If your Stator has the early-style Babbitt bushing, replace it with the new stator support bushing (furnished). It is not necessary to remove the pump from the Converter housing. Using the PTO cover bolt, install as illustrated. Depress the main regulator valve stop and remove the retaining pin, then remove the valve stop (no need to remove the spring or valve). Install the bronze shim on the spring side of the plug, then reinstall the Plug and Retaining Pin.

Make sure all valves are free. Remove the rotating clutch module from the transmission by lifting and wiggling as you lift, to avoid disturbing the main shaft lube-to-spacer position. Do not lift up on the main shaft. Disassemble the rotating module and modify it per the Valve Body kit instructions. The Converter housing on the bench provides a nice stand for working on and testing the module.

PPE Stage 4 Allison Transmission Kit – stator support assembly with main regulator valve and converter relief valve, using PPE Regulator Shim Kit 128042020
Step 15: stator support, Main Regulator Valve and Converter Relief Valve. Install the bronze shim from the PPE Regulator Shim Kit (128042020).

Step 16 — Reassemble the Stator Support

Reassemble the Stator support to the housing with new gaskets and install it into the transmission.

CAUTION: A few of these have leaked from the bell housing bolts due to roughness in the casting. A little silicone under the bolt heads is highly recommended.

Step 17 — Assemble Stator C1/C2

Assemble the Stator, C1/C2 using the diagram below. Replace the C1 clutches and Bottom Apply Plate. Clearance should be .090″–.110″.

PPE Stage 4 Allison Transmission Kit – stator support reassembly and C1/C2 stator exploded diagram
Steps 16–17: reinstall the stator support with new gaskets, then assemble the Stator and C1/C2 clutches using the exploded diagram.

C2 Piston Modification

Step 18 — Drill the C2 Apply Piston

Enlarge the two holes on the C2 Apply Piston with the large drill (.156) furnished — just deep enough to install the orifice plugs flush to the surface.

Step 19 — Drill the C2 Piston Passage

With the large drill furnished (.156), drill a hole down against the ledge as shown. It’s not fussy — drill through the piston at the approximate angle shown.

PPE Stage 4 Allison Transmission Kit – drilling the C2 apply piston holes and passage with the .156 drill
Steps 18–19: enlarge the two C2 Apply Piston holes for the orifice plugs, then drill the angled passage down against the ledge.

C1/C2 Spring Cage & Clutch Assembly

Step 20 — C2 Spring Cage

Separate the C2 spring cage as shown. Angle the old springs with a 5/16 drill to remove them. Install the big end of the New Springs over the flares in the top cage, then install the bottom cage into the new springs to close the spring cage.

Step 21 — Assemble C1/C2 Clutches

Install the stepped Apply Plate flat side up. Make sure the bearing is on the top of the C-1 hub. Install the C-2 hub and start the clutch with a Friction against the Apply Plate. Alternate Kolene® Steel and Frictions (8 Frictions and 8 Steels), bottom apply plate ending with a Steel Plate on the top. Install the Bronze Washer on the C2 hub, then install the P1 Plate, Sun Gear and Snap Ring. Clearance should be from .070″ to .085″.

TIP: With the rotating module in the converter housing, you may air-check both C-1 and C-2 with a rubber-tipped blow gun. The 3/8″ hole at the 7 o’clock position is C1; C2 is at 5 o’clock.
PPE Stage 4 Allison Transmission Kit – C2 spring cage separation and C1/C2 clutch assembly exploded diagram
Steps 20–21: separate the C2 spring cage and install the new springs, then assemble the C1/C2 clutch pack (8 Frictions and 8 Steels).

Final Assembly

Step 22 — C3 Clutch & Module Install

Depress the C3 Top Plate and remove the Snap Ring, Top Plate, Clutch Pack, Apply Plate, Springs and C3 Piston. Install the furnished C3 Piston (bleed hole at the 12 o’clock position) and install the return springs onto the furnished apply plate. Install the Apply Plate groove side up. Install the Frictions and Steels in the same manner as C4 (5 Frictions and 4 Kolene® Steels), aligning the slots with a 12 o’clock hole position. Install the furnished C3 Pressure Plate, depress the plate and install the Snap Ring with the gap at the 1:30 position. Clearance should be from .065″ to .070″.

Retain the bearing with assembly gel, then install the rotating module, making sure the module is fully seated. Install the Converter housing with a new gasket and torque to 45 ft-lbs. Check end play at the turbine shaft (.011″–.060″). Perform the Valve Body modifications per the Valve Body Kit instructions.

NOTE: To read and clear codes, use PPE’s Xcelerator Tuner. The transmission relearn procedure can take up to 2 hours; PPE’s Xcelerator Tuner can speed up this process using the re-set transmission procedure.

Step 23 — Fill with Transmission Fluid

IMPORTANT: Do not start the engine unless the transmission has been filled with transmission oil — minimum 16 quarts with a shallow pan, or 18 quarts with heavy-duty deep pans such as the optional PPE Deep Transmission Pan.
PPE Deep Transmission Pan (Part #1280510) with Allison deep pan filter and installation hardware
Optional PPE Deep Transmission Pan (Part #1280510) — includes Allison deep pan filter and installation hardware.

Transmission Assembly Reference Diagrams

Use these exploded views as a reference for component order and orientation during reassembly.

PPE Stage 4 Allison Transmission Kit – exploded assembly diagram showing bell housing, pump body, spacer plate, C1 piston, case and valve body
Exploded assembly reference (sections A–C): bell housing, pump body, spacer plate, C1 piston housing, case, valve body and solenoids.
PPE Stage 4 Allison Transmission Kit – exploded assembly diagram showing planetary gear sets, clutch packs, ring gears and rear section
Exploded assembly reference (sections D–E): planetary carriers, sun gears, ring gears, clutch packs and rear extension assembly.
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