The contact owns a 2016 Ford Edge. The contact stated that while driving approximately 25 mph, a booming sound coming from the vehicle suddenly occurred. After stopping to inspect the vehicle, smoke was present coming from the engine compartment and flames were present from under the vehicle. The fire department was called to the scene but the flames were no longer present upon arrival. The vehicle was towed to the local mechanic who diagnosed that the transfer case had exploded and the transmission needed to be replaced. The transmission was replaced and the failure was remedied. The manufacturer was notified of the failure. The local dealer was not informed of the failure. The failure mileage was 56,000.