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The timing can be adjusted by loosing the 2 bolts that hold the distributor on any pre-1989 740s. Be sure your timing belt is installed properly too. Another note here, the harmonic balancer on the 4 cyl Volvo has a rubber mounting between the inner part that attaches to the crankshaft and the outer part that the drive belts go around. They are known to slip. If your timing is way off, put a small white paint mark on the crank pulley and rev the engine a few times while watching it with a timing light. If it is changing positions a lot then you are going to have to replace the balancer before it comes completely apart.
you cannot set the timing in a 740. if it doesn't run, it's not right.
No one said it did not run. Timing belts can be off as many as three teeth and still run. Over 35 years in the Volvo business myself. Do note the question was about a 1990 Model that is a crankshaft position sensor fired car. The timing is not adjustable on a 1989 or later as the above answer states, PRE-1989
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