I have this nagging oil leak (07 GS350 AWD). Drips or wicks onto the right exhaust manifold at the o2 sensor. I've shown it to the dealer but after three attempts they have not been able to fix it.

Its annoying because car smells like burnt oil until it burns off, not to mention it may be a fire hazard.

I'm thinking its a bad valve cover gasket but they put in a new one. Cant think of anything else in that area that could leak oil.

Anybody have this problem?

 

You should ask them to open a technical assistance case so that somebody who possibly knows more about these things than they do from higher up can solve the problem for them.

How did you come to notice this at first, just investigating smell?

 

Good suggestion. Yes, investigating smell. Was surprised to be able to see it. Only visible when exhaust is not hot enuf to burn it off. Its not a big leak. Just enuf to get the ex man wet. As engine warms up, a little smoke is visible and the smell is noticeable.