They may coat the tools but they sure spare the gear lube. I bought a 4" and a 7" grinder from them a few months ago and the 4" made a loud bearing noise when I turned it on. I took the head apart and there was just a small dollop of grease in the gear case and none of it was touching the gear. I put a large blob of grease in it and re-assembled it-noise was gone. Then I did the same for the 7" prior to running it which also had very little lube grease in the gears. Probably why they dont last very long.
I cant say that I have noticed the smell being any worse than any tire store I have been in.
i'll bet you it is factory specific. I know in any given month or two, HF may have 2-3 different 4" angle grinders for sale.. probably meaning different factories.
I use angle grinders alot and will usually wear out, or put a ton of hours and near wear out a 9$ special unit each year on a tractor project. when they die I toss them in a bucket, and then every couple years take em apart and see if I can make 1 from 3, etc. so far I've run into at least 3 different armature types.. thought have had good luck mixing and matching most parts that fit.
so far I've yet to have a front end gearbox failure *.. gear failure anyway. did hav eone that had a retaining nut come loose, and just about all of them have aplastic lock tang for changing the blades... those ALWAYS die. so far all the front ends i've taken apart hav a healthy dose of sticky brown grease in them.. say #1 consistency.. maybee 1.5#.
I actually have the original 'head' from my first hf grinder it's got to be near 20ys old now.
motor died in it / plastic body melted at brush holder. it had a long armature. maybee 10ys passed till i had another tool with similar body die.. it's parts matched up except for the on / off switch which used a divot cutout of the head on the new tool, but the cutout was not present on the old castoing nor could it be added.
thus when assembled the swith was off. I wired it internally hot across the switch, epoxied it in place, and added a switch on the power cord. I use that grinder as my wire wheel and cup model as it had a bigger arbor head.
soundguy