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There can be more than one reason for this. One possibility is that the oil seal around the gear shifter has gone bad. Another thing that could have happened is that a large gasket has gone bad and is leaking. The crankcase housing is in three parts with two gaskets between them and these occasionally begin to leak after many years. This is not a big problem, you can get an original gasket kit for the XL350 or you can cut your own gasket from scratch from sheet gasket material that can be bought in auto service shops. In any case, you have to dismantle the crankcase.

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11y ago

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