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Unfortunately I was not present when the cam cover was removed. When this happened I was 500 miles from home and left the car at a dealer with the understanding that it would be fixed for approximately $3000. That was as much as we agreed to spend on fixing the car. About a week later I got a call and was told that I needed new cams and there was some concern about the rods. At this point I told them to stop and paid the bill and had the car transported home. I am an above average mechanic(IMHO) and was ready to tackle the job of fixing this myself.
I found the front slinger cracked and a piece broke off just barely touching it. This is my best guess as to where the metal came from. The cam journal was scarred pretty bad and likewise with the cam bearing housing. Any time the oil filler cap is taken off the chance exists for a small piece of metal getting into the oil. The entire area is flooded with oil as that is the only way oil gets to the cam bearings. There are no oil ports in the cam housings. The oil has to come from the outside and flow through the bearing thus opening the possiblity of bring any small contaminate into contact with bearing surface.
I had the head off at 107K due to a burned exhaust valve on No.3. At this time I had the timing belt changed as it already had 17K and I just changed it as a precautionary measure since it was in the shop and the only cost incurred was for the belt.
I put four new valves in No. 3 and still had problems with the plug fouling every few thousand miles. I wasn't aware of the brickboard when I bought the car as had I know of the potential problems I wouldn't have bought the car.
I had driven a 75 164 4spOD for 16 years and loved the car. The room the power it was really nice. I bought an 82 245 new and while it's a great car, lacked the power of the 164. So I went looking for a top of the line Volvo and came across the 960. For me it was a money pit but certainly there are plenty of 960 owners that haven't had the bad experience I had. I love my 940 SE Turbo as the body style is identical to the 960 with IRS and in my case I have a LSD, also the color is the same as the 960.
I personally think that following the path you have taken with your 965 that there is little to worry about. IMHO use only OEM belts and don't forget about the belt tensioner and or water pump. A seized water pump or belt tensioner will cause the belt to snap just as what happen to mine. There was a post awhile back where the serpentine belt broke and got behind the cover and broke the timing belt with the same result trashed valves. You may have yourself in the same boat I was, it might not be worth fixing particularly if you have to let some else do it.
I am disappointed that Volvo chose an interference design. It was not necessary and certainly has cost Volvo the durability the engines have been know for.
Enough of my soapbox. Enjoy your 965, there were alot of improvements made by 97. You should be on your 2nd belt with 111K. Good motoring.
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