We were in my wife's 2001 S40 a few days ago, running some errands and everything is fine. We get home and smell this horrible burning smell. I traced it down the passenger rear wheel and you can feel the heat coming off of it. I suspect it is because of the parking brake. It was not engaged and no lights were on. I tested it by parking on an incline and applied the parking brake, it held the car, I released the brake and it rolled back as much as it would in Park. Drove the car again today, the burning smell is still there, but not as strong and not as much heat coming off the wheel. What should be my next course of action?

 

Check the caliper for seizing on your way to check the parking shoes.
The linings often come off the shoes and sometimes cause problems like binding.
Ed

 

thanks for the tip, I will keep everyone posted...