Blue smoke from your 2004 VW Caddy TDI typically indicates that the engine is burning oil, which can be caused by worn piston rings, valve seals, or turbocharger issues. It's important to check the oil level and condition, as well as inspect for any oil leaks. If the problem persists, consider having a mechanic perform a thorough diagnostic to identify the underlying cause and recommend necessary repairs. Ignoring the issue could lead to more serious engine damage over time.
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