Yahoo Message Number: 8786 (http://groups.yahoo.com/neo/groups/Country-Coach-Owners/conversations/messages/8786)
We tow a 4 X 4 2000 Cherokee Sport Automatic and previously a 1998 Wrangler Automatic and get the smell in both. The Jeep dealer told us it's no problem. Towing actually grinds off a little rubber dust on the front wheels when turning. The wheels don't actually turn all the way in a tight turn, you kind of just drag and scuff them. This in turn allows some of the rubber dust to adhere to the exhaust pipe and other parts under the front.
When you start up, the rubber dust burns off and that is what your smelling. It's more noticeable in hot weather. If it smells like oil, then that is a different problem. We tow with wheel unlocked, differential in neutral and tranny in park just like the manual says.
No problems ever...
Tom
02 Allure 30780