Chrysler Repair: 96 G. V. Transmission fluid smells burnt. Why?, engine cooling system, frictional losses

Question
What would cause Transmission Fluid to burn.  Transmission faily new, but getting a burning smell.  Someone suggested somthing with the overall cooling system ?

Answer
Hi MU,
Frictional losses and clutch slippage generate heat that can raise temps to the point of burning the fluid. Normal heat rates can be handled by the fluid cooler mounted in front of the engine cooling system radiator. But either excess heat generation or inefficient transfer of normal heat at the cooler can overheat the fluid. You said the trans if fairly new. If so it may still be warrantied from the prior repair. My suggestion if that were the case would be to seek repair under warranty. The Chrysler manuals speak of burnt fluid as being a sign for trans rebuilding. So it may indeed auger poorly for the function of the trans in the near future. It could be that the cooler is not flowing freely or the fluid pump is compromised, and there are tests for those possibilities. So taking the trans to the shop that last worked on it may be the next step.
Roland