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This unit will be running a timing chain. Now,The 1.6 "diesel" engine has both a belt and chain. In the diesel edition, the belt runs from the crank shaft to the cam and the other cam is ran by the chain.
(you need a set of timing tools to do this)you need to place timing pin in engine block located drivers side just above the sump you need to set pistons at tdc to do this turn crankshaft clockwise till the crank stops against the pin then you need to take off the rocker cover place cam setting bar in the end of camshfts you then need to loosen cam sprockets dont remove undo tensioner remove belt replace with new starting at crank anticlockwise tension up tighten cam sprockets remove bar and pins 2 rotations by hand to see if everything ok then start
all Zetec engines (2.0 DOHC) are NOT interference engines. There are deep reliefs cut into the top of the piston to clear the valves when they are fully extended. There will be no valve damage if the timing belt breaks on a Zetec engine.
This is a very very easy timing belt setup. first off you have to remove the valve cover. Then you have to remove the serp belt. Then remove anything thats in your way of the front cover. after you remove the crank pulley re-install the crank bolt. DO NOT LOSEN THE BOLT FOR THE TENSIONER!!!! now spin the crankshaft until the sproket aligns with the timing mark. now at this point the two camshafts should be aligned. now there is a special tool from ford that holds the cam shafts in place. all it is is a 1/4" peice of metal that goes on the left side of the cam shafts to hold them into place. if you mark the cams you wont need the tool. or if you can find something to fit in the left side of the cams that will work too. anyways after that its just the same steps in reverse. very easy to do.