A worn turbo or broken would create smoke. Blue or Gray smoke is either worn rings or a clogged PCV. White smoke is from foreign fluid entering the engine. Typically indicative of a head gasket leak. Black smoke is Leaking injectors or an ignition problem or an issue with the turbo.
If you are experiencing a loss in power then you most likely have a worn turbo bearing.
Experienced this personally, garage diagnosed injectors/blown turbo, turned out to be the Exhaust gas recirculation valve, Mounted on air intake, acts like a large butterfly valve to decrease exhaust smoke.
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