My 1995 T5 (150k) started smoking mainly on over run when lifting off throttle. Big cloud of blue/grey smoke and rather embarrassing. After a good search around this forum I was getting ready for a big bill! Turbo oil seals, valve seals, piston rings etc
The good news is it turned out to be a blocked breather pipe caused by another pipe splitting and loosing pressure. The bill was just £40. So if your T5 is smoking check the oil breather system first as it could be the cause
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