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When my cars have loose timing belts that usually means the belt has stretched or tensioner may be bad. If the belt was loose it may be a tooth or two off, could be the tensioner. I bought a car once which the people said it had lost power ever sense the timing belt was changed. The shop wanted to charge them another 700 dollars to go back and check. I bought for 800 dollars and found it was 1 tooth off. Ran great after that. Just my thought.
The most likely cause is a timing belt change that was badly done in the past.
You could ask the mechanic
- to use a good quality new timing belt eg Dayco - to change the water pump if it was not done in the last 100000 mi or so. It is behind the timing belt, so a good opportunity. - if the timing belt tensioner should be changed too. They do weaken. - if threadlock should be applied to the crankshaft pulley bolt. Toyota does do that at the factory. - to check for oil leakage at the crankshaft nose oil seal. This can be changed while the pulley is off.
Provided the belt that is to be used is a high quality belt such as a Gates brand the belt can safely last for 80,000 to 90,000 miles before needing to be changed. As for the original belt usually for hondas it's 100,000 miles Toyotas about the same 100,000 to 110,000 miles, check with your local dealership's service department for you cars original belt Suzukis and kias are about 90,000 miles.
I am assuming that you have a series 80 diesel engine and that it has run for about 100,000 kms hence the warning light and the changing of the timing belt. Based on the instructions of its repair manual you need to "remove the
grommet off from the speedometer and turn off the lamp by pushing the
warning light reset switch, then replace the grommet." Alternately, you can try to reset the entire computer of the vehicle by removing the battery cables for a couple of minutes. Pls note that some car radios/head units would revert to security default (ask for a code) when power is completely removed.
Hope this be of initial help/idea. Pls post back how things turned up or should you need additional information.