Introduction
This guide explains how to install a BorgWarner 1354 (BW1354) transfer case behind a C5 automatic transmission in a Ford Bronco II or early Ford Ranger. While the BW1354 will physically bolt to a C5, the shift arm and shifter geometry are different from earlier BW1350 setups and must be addressed for proper operation.
Using the correct combination of BW1350 shifter components and a specific 1986–1987 BW1350 shift arm, the BW1354 can be shifted cleanly into
2Hi, 4Hi, Neutral, and 4Lo without binding or loss of range.
This page documents the correct parts, compares shift arm lengths, and shows real-world examples.
Required Parts
- C5 / BW1350 floor shifter
- 1986–1987 BW1350 removable shift arm (FM145 application)
- BorgWarner 1354 transfer case
Shift Arm & Shifter Configuration Overview
You need a C5 BW1350 shifter, and a 1986–1987 shift arm from a BW1350 manual transfer case originally installed behind an FM145 manual transmission.
This arm is the same length as the fixed shift arm used on 1983–1985 C5 / TK4 / TK5 / FM145 BW1350 transfer cases but is removable.
The BW1354 shift arm is the same length as the FM146 / A4LD BW1350 shift arm, which is shorter than the arm required for a C5 shifter.
1983–1985 Fixed-Arm BW1350 (C5 / TK4 / TK5 Applications)
A4LD / FM146 BW1350 Shift Arm vs. Shorter Transmission Shift Arm
This comparison shows the difference between the longer BW1350 arm required for proper C5 shifter travel and the shorter arm typically found on A4LD and FM146 applications.
Long BW1350 Shift Arm vs. BW1354 Shift Arm
BW1354 Shift Arm
C5 / TK4 BW1350 Floor Shifter
1986–1987 FM145 BW1350 Removable Shift Arm
Short BW1354 Arm with C5 BW1350 Shifter – Low Range
Short BW1354 Arm with C5 BW1350 Shifter – 2Hi
Why the 1986–1987 BW1350 Shift Arm Works
The 1986–1987 BW1350 shift arm originally used behind the FM145 manual transmission matches the overall length of the earlier fixed-arm BW1350 used with the C5, while retaining a removable design. This allows it to be installed on a BW1354 and still provide correct shifter throw and detent alignment.
Frequently Asked Questions
Can a BW1354 bolt directly to a C5 transmission?
Yes. The BW1354 shares the same bolt pattern as the BW1350 and will bolt directly to a C5, but the shift arm and shifter configuration must be corrected.
Why won’t my BW1354 shift correctly with a C5 shifter?
The BW1354 shift arm is shorter than the BW1350 arm used with the C5, which limits shifter travel and prevents full engagement of all ranges.
Do I need a custom shifter to make this work?
No. A factory C5/BW1350 shifter combined with the correct 1986–1987 BW1350 shift arm will allow full and proper operation.
Summary
Installing a BW1354 transfer case behind a C5 automatic transmission is a practical upgrade for Bronco II and Ranger owners when the correct factory components are used. By combining a C5 BW1350 shifter with the proper 1986–1987 BW1350 shift arm, the BW1354 can be shifted through all ranges reliably without custom fabrication.
About The Author
Jim Oaks is a longtime Ford truck and SUV enthusiast and the founder of The Ranger Station and Bronco II Corral. With decades of hands-on experience, he writes both technical and non-technical articles covering the Ford Bronco II, including mechanical systems, factory engineering, common upgrades, and detailed feature vehicle write-ups.
In addition to technical content, Jim documents Bronco II history, rare factory and aftermarket models, production details, and original Ford marketing materials. His work is based on firsthand experience, original documentation, and long-term involvement in the Ford enthusiast community.
Through his sites, Jim has built comprehensive reference libraries that serve owners, builders, restorers, collectors, and historians, helping preserve the Bronco II’s technical knowledge and historical significance.