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I would be surprised if this is correct. The speedometer drive is usually on the output of the transfer case or on the rear axle housing. If it is on the transmission, your speedometer will read read incorrectly when in low range. Not that that is really huge deal.Also, even if the speedometer is not being driven when flat towed, it is still a false sense of economy. The entire drivetrain from the transfer case back is being operated and causing wear.
I would be surprised if this is correct. The speedometer drive is usually on the output of the transfer case or on the rear axle housing. If it is on the transmission, your speedometer will read read incorrectly when in low range. Not that that is really huge deal.
Also, even if the speedometer is not being driven when flat towed, it is still a false sense of economy. The entire drivetrain from the transfer case back is being operated and causing wear.