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JF506E Transmission Trouble in Gear-Shifting after Rebuild

Q:
Mazda, Volkswagen, Jaguar or Freelander vehicles, equipped with the JF506E transaxle,
may exhibit a flare on the 2-3 upshift, and/or slips in 3rd, 4th and 5th gear.
A:
The cause may be, a cracked High Clutch Housing/Reverse Piston. This
crack is extremely difficult to see, and if missed during rebuild will cause premature high
clutch failure. When this piston is cracked, it allows high clutch fluid to bleed into the
reverse clutch circuit when the unit is in 3rd, 4th and 5th gear. The reverse clutch circuit is
open to exhaust, when the unit is in these gears.
Correction:
Replace the High Clutch Housing/Reverse Piston assembly.