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I spent some time trying to remove the hitch on my LR3 so for those who want to do the same, here is how I did it.
The hitch was frozen in place, years of driving in salty conditions in Minnesota.
1- Green handle removal, push the tension pin out with a punch tool or 2.5 Allen wrench
2- Remove the 2 Allen screws holding the red cover.
3- Spray some WD 40 inside the mechanism and let sit for a while.
4- Use a pair of locking pliers and the help of a rubber hammer to turn the releasing shaft counter clockwise to free the hitch.
5- I took the whole mechanism apart, cleaned it up with WD40 and then put it back together with a load of lithium grease. Watch out for the bead on the top of locking mechanism when pulling it out. I used a rag to keep it close by.
It took time to adjust the releasing mechanism when put back together, so just be patient.
Now it works just fine and I keep it in the truck when not in use + lubricate regularly.
biggest problem is realigning the parts after the shaft comes out. It helps to put it in a vice , if you lose the bead you can replace it with a bearing from the female end of a air fitting.
the pin on the green handle on mine is flush with the handle with no way to remove it. before i attempt to break off the green handle is there another way to pull the pin out? perhaps drill it out?
I solved this issue by installing a fixed, class III hitch - no issues of the LR hitch with it not releasing or engaging and I did not have to pay a fortune for a crappy piece of cast metal. Yes I can see it when its installed, but I would rather live with that, knowing I have a reliable tow hitch any time.
That said the installation takes some work to get the bolts installed -
First thing i did after getting my D3 was to remove the hitch and replace it with a fixed hitch, better height for my camper trailer and no more leaving a trail behind me on the tracks.
I created a method of my own which worked and removed the hitch in less than thirty seconds or so. Hitch is still functional and do not require a key anymore.