That's a ceramic-based "muffler patch" that's the equivalent of Bar's Leaks for a cheap radiator repair. As Upallnight mentioned, the alligatoring paint is a result of poor prep. Ugh, this is Sunday afternoon shade tree variety workmanship.

If I was the shop owner I'd be embarrassed.

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2001 3.0i * SOLD *
Current
2010 E83 Alpine White