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On my '91 when the VVT solenoid failed it was quite noticeable. Seemed like the car lost quite a bit of pep, which is why I investigated and found that the solenoid wasn't working. New solenoid brought it back to normal.There have always been questions about how much of a performance improvement results from VVT activation, and frankly, no matter how carefully I have tried to engage VVT, my calibrated seat-of-the-pants evaluation has never been able to sense any difference.
VVT on the S4 is triggered differently (engine load instead of throttle position) so maybe it's more noticeable when it goes out on the later cars? Mongo dunno, but it definitely made the car feel slow.