Nope. Runs right down to the head, off the front and down off the engine. Only leaks at high speed when oil is thrown up from the camshaft.

Clues are no evidence of oil consumtion (no smoke, no fouled plugs, O2 sensor fine -- although yours is probably not if you are running rich), loss on the highway only. There will be a small amount of oil around the filler cap (there is a relief cast into the valve cover, so any significant amount drains off) and there will be a small amount on the drivers side only of the valve cover gasket. Oil will drain off the front cover just like a bad front cover seal, so there will be oil on the passenger side front. Runs off and into the sound encapsulation panel.

Looks all the world like slopping filling (and you are putting oil in once a week, right?).

If you drive a couple miles at low speeds after highway driving, all the oil drains off so you won't seen drips, and what is in the sound panel will blow out at highway speeds.

I had the same problem -- used 2 quarts in 500 miles once when I got the cap on crooked, then almost another quart on the way home. Replaced the cap and changed the oil, haven't used a quart yet in the 3000 or so miles Mom has put on it since.

Peter

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1972 220D ?? miles
1988 300E 200,012
1987 300D Turbo killed 9/25/07, 275,000 miles
1985 Volvo 740 GLE Turobodiesel 218,000
1972 280 SE 4.5 165, 000 - It runs!