The common reason for that code on the 1.8 is a stretched timing chain. The code really means that the camshaft timing is out of sync with the crankshaft location. So the crankshaft might be at top dead center on number one cylinder and normally the camshaft might be 10 degrees before that (or similar) in this case the code sets because instead of the computer seeing the signal there it is showing up at 20 degrees when the crank is at TDC.
There is an easy way to tell without removing any parts but it isn't a test many places can or will bother to do. It involves using an oscilloscope connected to the cam and crank sensors and you look at the actual signal from each. Unfortunately most shops don't bother to use a scope and will instead tear the engine apart, then tell you, "yup the timing chain needs to be replaced for $XX".
For the DIYer the easiest way without a scope is to remove the valve cover and set the engine at the proper position and then look at the timing marks on the cam sprockets.
For that you remove the engine trim cover, then the ignition coils, then the PCV hoses, the bolts for the cover and then the cover. Next you rotate the engine so cylinder 1 is at TDC and the timing mark shows at zero degrees. Then you look at the two timing marks on the sprockets. They should be facing each other and setting level with the edge of the cylinder head. Although this sounds like a lot of work it only takes about 1/2 hour to do. I suspect you will find the timing marks off like the third image, instead of being in the position of the black dots they will be like the red dots or not visible below the lip of the cylinder head due to the chain stretch. At that point it becomes a choice, this engine is an interference design, if the chain and timing components are replaced now it should be okay until something else wears or fails. However if the chain wears more and then fails, you would likely be better off replacing the entire engine as it will damage the cylinder head and the timing cover at the least.
I'm sure Joe can guide you through the swap of the chain. I just wanted to let you know that it isn't a minor problem if ignored. Not saying you would but many people do, they will drive with the check engine light on for years, then complain when the engine expires "for no reason".
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Sunday, July 11th, 2021 AT 1:06 PM