Volvo Repair: car smokes, mechanic check, coolant leak

Question
My 1997 850 turbo has 140,000 miles. My problem is that my car smokes and there's a nasty smell due to the emissions. my mechanic claims that i need a new engine.  is there any thing else that could be done? i Love the car and I'm thinking of giving it to my daughter for my own peace of mind(safety and all). Would love to hear your response
thanks  Jay

Answer
take it to Volvo dealer ? i cant tell you like this what is wrong but i thing the last thing would be your engine  but i don't thing you have problem with engine you have either coolant leak to engine  or to much fuel  to cylinders going but you have to check it out it can be anything i need more info what color is the smoke?what did your mechanic check to come to the conclusion is engine is bad?