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Blue smoke is not good!! Piston rings are bad or valves. On a Mercedes it will cost you more than the car is worth at this point. Unless you have a sentimental attachment to the car and really really want to keep it., I would get rid of it. 123,000 mile is a great life for a 1989.
Does the smoke occur all the time? If it is present just after start up and then goes away, it could be no problem at all. There is always some condensation in the exhaust at start up. It is more noticeable in cold weather.
However, if it is there constantly, and you are losing coolant, it could mean there is a headgasket problem. Watch your coolant level and watch your temperature gauge. If the coolant starts disappearing, and the car starts overheating, stop it immediately and get it to an auto repair shop. Driving a car with a bad headgasket can cause major engine damage.
Not sure if engine coolant smells like rotten egs when it burns inside the cylinders , but it sounds like you may have blown a head gasket. Coolant and/or oil could be getting inside combustion chamber. Another possibility is that the catyletic converter might have broken up and colapsed onto the screen where it goes into the exhaust. Might give the rotten egg smell and block the exhaust enough to cause backpressure sufficient to cause the engine to run poorly too.
Try putting your palm over the exhaust pipe , if the exhaust is coming out in pulses (pop ,pop,pop) thats normal , if it is just slowly flowing out with no noticable pulses , I would check into the cat converter problem.
I would check the exhaust pipe a little closewr. White smoke can also mean a blown head gasket. Check the tail pipe to see if moisture is present. Also check coolant level. A blown head gasket can also cause related problems.
blue smoke out of 1.8 turbo its allways bad oil seal inside turbo.need new turbo or rebuild OEM. with 24 years experience working with vw never seen single headhasket go bad on 1.8 turbo engines.blue smoke its 100% turbo every time
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