The camshaft sensor produces 4 pulses per camshaft revolution, which the ECM uses to tell where the camshaft is relative to the crankshaft. The ECM uses that info to fine-tune the ignition and injector timing. It also uses it to verify the variable valve timing is doing what it should. I wouldn’t expect a severe performance hit with this code. In the event this signal disappeared the ECM would probably disable the variable valve timing function, but otherwise the engine should still run pretty good; though possibly you’d notice a little less quickness in the car’s acceleration.
If the cam signal didn’t disappear entirely but instead was corrupted with noise, that might cause the engine to run poorly. And if the camshaft/crankshaft phasing wasn’t correct – for example the timing chain was stretched or skipped a tooth-- that could cause the engine misbehave. Given the symptoms my guess is one of these
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the code is a red herring, symptoms unrelated to camshaft sensor, and the problem is elsewhere. Do a basic tune-up procedure, replace spark plugs, engine air filter, engine oil and filter, check idle rpm and ignition timing & check for vacuum leaks.
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timing chain is stretched. If you can see something inside the hole that you pour the oil that moves with the camshaft, turn the crankshaft forward and backward manually to see if the crankshaft movement is significantly delayed w/respect to crankshaft. If so, possible loose timing chain.
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cam sensor signal is corrupted. The easiest way to check this is with a Saturn scan tool or equivalent. A lab o’scope could be used also.