A mid-sized wheel loader came into our shop last month with a classic complaint: it was moving like a slug, and the transmission temperature gauge was pegged in the red after only twenty minutes of work in a gravel yard. The operator swore the parking brake wasn't stuck and the transmission fluid was full.
When we pulled the machine in, the first thing we did was check the transmission oil. It looked like dark strawberry milk. That milky appearance meant engine coolant had breached the transmission cooler and mixed with the fluid. However, simply replacing the cooler wouldn't explain the severe loss of power. We hooked up a pressure gauge to the torque converter test port. Normally, you want to see about 250 PSI of lockup pressure when the converter clutch engages in third or fourth gear. We were getting zero.
We dropped the pan and pulled the valve body. Inside, we found the lockup control valve completely stuck due to a sludge of coolant and transmission fluid that had baked onto the spool. Because the torque converter couldn't mechanically lock the engine to the transmission at higher speeds, the machine was constantly driving in "fluid coupling" mode. This creates massive amounts of friction and heat, which explains why it was overheating so fast. We replaced the cooler, flushed the system with a specialized solvent three times, put in a new valve body, and replaced the fluid. It's a harsh reminder: if a loader's transmission fluid ever looks milky, stop driving it immediately. Fixing a stuck valve body is expensive, but cooking the internal clutch packs because you ignored it will total the transmission.