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Ticking and Power Loss Help 700 1989

I have experienced what I hear is a pretty common problem with Volvos, a ticking noise. The car sound quite a bit like a deisle, and was at first annoying. The problem however only got worse. It eventually lead to the car loosing almost all power. The car revs fine in neutral with no pronounced ticking, however when the car is driving with the turbo active (inactive in neutral) the car will reach about 2000rpms than the turbo would kick in and the car stops accelerating. This is obviously a problem for speeds above 30mph. The reason I mention the ticking at all is because when the car looses acceleration power or when flooring it in an attempt to raise the revs, the car's ticking becomes increasingly pronounced then the tick sputters with the car. Im not sure if the ticking is a direct cause of the power problem, or weather the tick is meerly an effect. No matter what it is I need to fix this power-loss and I do not have a clue wear to start.
To reiterate, I have a sever power-loss when the turbo kicks in. The turbo seems to be wound, but makes a high pitched whistle sound when activated and a woosh sound when deactivated. Car is basically useless until fixed.
Thank you. -Brian-
PS. on a decline, while flooring it, the engine will rev to about 5000rpms, but there is still almost no acceration and the turbo wont ever release.






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