Dacia Sandero Engine Failure Risk

I'd echo the others, looks like a severe oil leak. Crazy of the dealer to drive it but that's their problem now. As annoying it is to deal with, I'd look to get a replacement car and consider yourself lucky that you won't have to pay anything for repairs as it will be a relatively extensive job.

It certainly looks bad, and the warning message all but confirms it.

As an aside, my sister had a Corsa which had similar mayo under the oil cap, but never lost a drop of coolant. I think it was just condensation, due to successive very short trips every day.

Yes, it’s the Renault 1.0 turbo engine.

Do those cars have a temperature gauge? If not, I'd wager the engine failure message is because it's running quite hot. Agree on the face of it that this looks like head gasket failure and is something those baby Renault engines are known for

Google "renault 0.9 tce engine problems". The HB4 engine has popped head gaskets and chewed timing chains. The newer 1.2TCE and 1.3TCe's are problematic too. Separate to the engines, the Renault electrics in some of them are comical. I've replaced a few UPC's for the weirdest faults imaginable.