This is the story I'm getting from my mechanic. I bought a 1998 V70 wagon about a year ago (120k miles), and my wife was driving it when she lost power.

When I got to the shop, I popped the hood and saw that the auxiliary belt was shredded. I worried about the timing belt, so I asked the mechanic to look at it and quote me a price for replacing it as well. The timing belt was not snapped.

I got a call from him saying that the auxiliary belt must have gotten caught up in the timing belt, damaging some teeth and throwing the timing off, more than likely bending valves.

Is this possible? Or could they have damaged the valves while putting the belt on?

Thanks from a newbie.

 

When the Aux. belt breaks like that it is somewhat common for it to get sucked into the timing belt and cause some damage.
Have them install a new t-belt and pulleys and see how it runs from there.
You might get lucky.