As opposed to most other Versatile models of the era that had ''pull-type'' semi-truck-like dry clutches on the flywheel, the ''500'' used a multiple plate hydraulically-operated wet clutch in a housing at the front of the transmission.
Has anyone done pressure checks to determine that it's a ''hard failure'' of the clutch pack?
I have only been around a couple of those tractors and don't know how hard it is to replace the clutch without dropping out the transmission.
Also, if there's lots of debris from a failed clutch it will likely be in the transmission, as well.
If you DO repair it, the clutch operating system will need to be checked out for proper operation and pressure to make sure the new clutch doesn't fail.
As a side note, I had a renter back some years ago with a ''500'' and he never had clutch trouble, but lots of trouble with the complicated shift linkage (which was worn from significant hours of use).
I don't know what the parts availability is from FIAT, but I would not be surprised if there's availability issues with the clutch and transmission parts for that older, low production tractor..
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