A vehicle axle assembly having an axle housing, an axle shaft and a sensor. The axle housing has a tubular portion. A flat is formed on an annular wall of the tubular portion proximate a distal end of the tubular portion. A hole, which intersects the flat, is formed through the tubular portion. The axle shaft can have an integrally formed target portion that includes a plurality of teeth. The sensor is mounted in the hole and abuts the flat to space a tip of the sensor apart from the teeth of the target portion by a predetermined distance.

 
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