The latch mounted in the trunk lid is adjustable via two bolts. I've tried adjusting it up, back, left and right and still no joy. I'm thinking of climbing into the trunk with a flashlight and have a friend shut and open the lid so that I can see what is going on.......

I can remove the latch mounted in the trunk lid and when placed into the locking mechanism, it LOCKS!! So.....I know it works, problem is what position to tighten it down to? I'm thinking of using modeling clay by placing the modeling clay on the top of the trunk lid and then close the trunk lid slowly down onto the removed latch. That should show where to reattach the trunk lid latch.