I contacted Garrett USA and here is the reply:

"I'm afraid to be sure the unit would need to be returned by EIM to Brand for a full warranty report.
Brand provide a full analysis service for any turbo that seems to have failed.

I'll be honest with you and say that normally, turbochargers give off smoke because something else in the engine is affecting it. In some cases it usually follows some work on the engine and block. In other cases it is just natural engine wear and in some cases it is bad servicing. So there are many different factors affecting the turbo.

We can help to determine it through a full warranty analysis to help out."

What is that something else in the engine? We looked at just about anything that could even remotely be the cause.

 

The "something else" would be worn piston rings, valve guides or more fuel being fed to the engine than it can use.
You cant flood a diesel engine, you can dump as much fuel as you want into it and all it will do is smoke like a paint factory fire.

You removed the turbo, the smoke stopped.
Had it continued then it could have been worn piston rings, valve guides, etc.

I have been wrong before, but I still say it was a bad turbo.
Can you buy a used one and install it to see what happens?

 

I did buy a used one two days ago and though there's no smoke, it drives as if there's no turbo either. It must be the wrong turbo.
The mechanic is looking for another one. It is now getting to the point that I'm considering replacing the engine and sell the car.


With regard to the something else issue can you please clarify a bit more. For example the rings are worn I would get smoke but would also have oil pouring out of the turbo? And I do mean pouring out of it?
Cause this is what is causing the whole confusion is that no one can explain how a engine problem can result in so much oil out of the turbo. One theory was that the engine is building up pressure that prevents that turbo return oil from draining into the oil pan. They suspected that breather but I replaced it and it works fine. Can any of the above, like worn rings or worn valve guides cause pressure build up?

 

Worn piston rings would just blow smoke and not let actual oil into the exhaust because it would all be burned by the engine with the fuel.
Same thing with worn valve guides.
If the turbo oil return line was clogged it would allow oil to collect in the turbo and then it would smoke and leak oil.
I would next remove the oil return line for the turbo and make sure it is not clogged.
Other than that this sounds like a bad turbo just like we had already said.
Keep us posted please.

 

I ended up buying a another new turbo and the car now runs great. It was the turbo all along as many here suggested.

The Garrett dealer is still refusing to take back the bad turbo and Peter Purdy at Honeywell doesn't seem to be able or wanting to help. He initially promised to talk to them to have the turbo tested in their Malta plant and then went on vacation more than a month ago. Since then I've emailed him twice and still waiting for reply.

Thanks to everyone who replied, your were great.

 

Glad you got it sorted out and thank you for reporting back.

 

Glad you got it sorted. Track down Purdy's manager if Purdy isn't replying.