I notice it too. I have cloth in my gen 2, have put 1500 miles on it, about 2 months old now. It's not offensive, and nobody else picks up on it except me. You have your standard new car smell, and then an "undertone" of a sweet smell you could almost taste. I've noticed Buick cars have something of a similar smell. It's gotten less and less, as the weeks go on. I wouldn't consider it offensive though.