Subaru XT Problem Reports

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Engine oil leaks are common from the valve cover gasket and camshaft & crankshaft seals. Replacement of leaking seals and gaskets is recommended.

Premature timing belt failure is not uncommon. The recommended service interval is 60K, but belt failures before that mileage have been noted. This 1.8L engine is considered "free-wheeling", therefore the chances of valve damage if the timing belt fails is minimal.