DRIVING NORMALLY, NOTICED THAT THE POWER STEERING WAS NOT WORKING. THE CAR WAS VERY DIFFICULT TO STEER. PARKED CAR AND NOTICED SMOKE COMING FROM THE ENGINE COMPARTMENT. LOOKED UNDER HOOD, NOTICED SMOKE GETTING WORSE, SO I DROVE THE CAR UP TO STREET LEVEL FROM GARAGE. LOOKED UNDER HOOD AND THERE WAS A SMALL FIRE STARTING AT THE LOWER REAR OF THE ENGINE. I WAS ABLE TO USE FIRE EXTINGUISHERS TO PUT OUT THE FIRE JUST AS THE FIRE DEPARTMENT ARRIVED. HAD CAR TOWED TO THE DEALER. THE INITIAL DIAGNOSIS WAS THAT THERE WAS A STUCK RELAY IN THE POWER STEERING UNIT, CAUSING IT TO OVERHEAT. A WIRING HARNESS ON OR NEAR THE POWER STEERING UNIT WAS DAMAGED BY THE HEAT AND SHORTED SOME WIRING, CAUSING THE FIRE. THE FIRE WAS LOCALIZED TO THE ENGINE COMPARTMENT. CAR IS CURRENTLY BEING REPAIRED AT THE DEALER. *JB