I'm having the same problem. Mine smells like its a mixture of oil and rubber burning. I check the oil regularly and it's never low. What should I do guys? A4 3.2 B7 QUATTRO

 

to everyone with oil smells and so on, yes valve cover gasket can leak and cause this issue but with Audi its not that easy most of the time. If your going to change valve cover gaskets do yourself a favor and change out the cam shaft seals and plugs at both ends of the heads and while your at it go ahead and change the cam shaft chain tensioner gaskets.. 90% of the time the burnt oil smell is from the seals, plugs or cam chain gaskets leaking and it goes right down on the exhaust manifolds. The valve cover gasket is not the lowest point in the rear of the engine that can leak oil the cam seals and cam plugs are at the very least change those and if your a good enough mechanic to tackle the cam chain gasket i would highly recommend that as well... the valve cover gasket will need to be replaced in order to do the seals and plugs anyhow you may as well do as much as you can while your in there or you most likely will end up having done just the valve cover gasket and still have the burning leaking oil smell in the end... Oh and the reason you smell this in the first place is Audi decided for what ever reason it would be a good idea to have you passenger compartment air get pulled in from the engine bay in the first place.." THANKS AUDI " lol now everytime oil burns you smell it with your ac or heat on or if you have an exhaust leak you get to be sufficated by it thru your air vents.

 

The smell is unique because synthetic oil smells different than mineral oil when it hits something hot. It's definitely valve cover/cam chain gaskets or camshaft seals. It's already failed once on my 2.7, and now, it's failing again. Seems like they just like to leak. I've done the cam belt twice, and each time, the new seals seem to last about a year, then you smell it all over again. Good news is that you only smell it when the car's stopped, i.e., stop signs and lights; once there's airflow, even a little, the smoke evidently doesn't make it into the cabin....