I propose a simpler system- shooting guns or revving engines while they are on fire increases the number of stacks on the component. Seriously, you have a mechanical contraption filled with flammable fuel or explosive gunpowder and you expect it to work with bursting into flame?
It creates a choice on whether to keep shooting or and finish off the enemy while risking getting kicked off (or burn the engines and get an extra bit of speed now), vs thinking long-term and putting the fire out. I think it would be fun. You could also just not use the component, making you less vulnerable to fire if you sit still and focuse on fire control, at the cost of letting the enemy get a better position. This would make fighting squids more interesting.