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The turbocharger is disassembled. Oil can become so hot inside a turbocharger that it cooks and leaves carbon behind. The carbon then clogs oil passages and restricts oil flow. Restricted oil flow is very bad news to the turbocharger.
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Parts are cleaned and inspected. Measuring of inside housing diameters and outside shaft diameters will determine which parts can be reused and which need replacement. Cracked exhaust housings are an item that will require replacement.
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Balance is everything. Even the slightest bit of imbalance can cause a turbocharger assembly to come apart - or grenade. The compressor and turbine wheels are balanced individually and then the entire assembly is balanced.
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The turbocharger cartridge is assembled with new bearings and seals. The shaft spins on a thin layer of oil just like the crankshaft in an engine. Worn bearings cause excessive shaft play. Oil can escape past the seals. Clouds of blue smoke on boost could explain where all that oil is going.
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The turbocharger cartridge is put back in between the hot and cold side housings. With assembly complete the wastegate actuator is pressure checked to see if it opens the internal wastegate at the correct pressure.
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