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What his means is that the fluid is leaking out of a hole or crack in some part of the pipework through which the transmission fluid flows. Park it on a flat clean surface and see where the fluid is dripping out onto the ground. The hole will be somewhere above the drip.

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Q: 2001 Saturn and just recently transmission fluid started leaking out was told that there is a hole in the transmission - can you explain what that means?
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