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Is the 1997 ford contour 2.5L dohc duratec engine an interference design. Will valves contact pistons when a timing component fails?

Yes, the 1997 Ford Contour 2.5L DOHC Duratec engine is an interference engine. If a timing belt (or chain, depending on the specific year and configuration, though most are belt-driven) breaks or skips, the valves and pistons will collide, causing significant engine damage.