Purchased a 2006 S80 with turbo for my kids in October. The car recently became due for an oil change but ran great. Took it in for an oil change yesterday. On the way home smoke started coming from the tailpipe. Got out and checked under the hood. No smoke coming from under the hood, checked the dipstick, it had clean oil on it. Luckily I was less than a mile from home. Got it home and let it run in. The driveway to see if the smoke (only smoke) would go away. The thought was that maybe the previous owner used standard oil instead of synthetic oil. And it was smoking because of the new synthetic oil. Checked the oil again (on a level surface) and the dipstick was bone dry. Added more oil and called it a night. Today I went to start the car, after making sure there was oil on the dipstick. There was oil but just a bit on the tip. So I slowly added enough to safely start the engine. After staring it right up, along with smoke, oil is litterally pouring out of the tailpipe! It is definitely oil (smells, feels and looks like oil). None of the other fluids are low, the "no oil pressure, stop safely" light flickers on occasionaly, otherwise no idiot lights and the gauges read normally. The car starts, runs and drove normally. When the oil level drops back down there is the obvious engine noise.
Has anyone EVER seen this?

Oil coming from tailpipe!

 

I dont believe I can safely do a compression test. The car does appear to have all the symptoms of a bad turbo. BUT the spark plugs all have normal wear, except the spark plug on cylinder 3 (the middle one). It was pretty covered in oil. Aside from the turbo, is there any other place that would allow oil to dump into the exhaust?

 

I dont believe I can safely do a compression test. The car does appear to have all the symptoms of a bad turbo. BUT the spark plugs all have normal wear, except the spark plug on cylinder 3 (the middle one). It was pretty covered in oil. Aside from the turbo, is there any other place that would allow oil to dump into the exhaust?