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First off, with the overdrive out, it may just be a switch, or you may have to rebuild the overdrive unit. not hard, but I'd call around some transmission shops to see what they hget for that to put it in perspective.
Have the compresion checked. any vw diesel or mercedes diesel mechanic would have the proper gauge for it, and it would be money well spent compression is everything on a compression ignition engine. The smoke could just be a timing issue, or low compression( low comp= incomplete combustion).
You would need a liberal minded vw diesel mechanic nerby, or be ready to invest in about$500 in special tools to maintain the thing.
Are there any signs of coolant loss?
is ther oil in the breather tube or on top of the air filter element( pop the air box open)?
Even with good compression, with the tranny problem, it's not worth over $500, and I love diesels, but for some reason people have some rediculous ideas of what these things are worth.
type diesel in the serch box at the bottom of thepage and read the old posts on the subject
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-------Robert, '93 940t, '90 240 wagon, '84 240 diesel (she's sick) , '80 245 diesel
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