I had the same problem! Exactly as you say it is...right on top of the emblem! I actually had a long drive and when i step out i smelled something burning...popped the hood and bingo!!! I called the dealer and they replaced my liner under warranty...if yours has expired then just make sure that the clips that hold on to the liner are popped in securely! ...the burn stuff on the emblem should wash out with a little elbow grease!