The "slip" action of hypoid gears creates a lot of friction and heat. The older centerline-mounted pinion gear like the banjo-housing Fords ran a lot cooler than when the engineers decided to lower the floorboard height by putting the pinion gear off center toward the bottom of the ring gear. Hypoid gears are quieter, and somewhat stronger than centerline gears due to the increased surface contact of the hypoid gears, but they're a lot more tricky to get the tooth contact pattern set up right.
Jerry


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