I don't know if anyone else has had this problem, but the top folded section that the grill fits into is a water trap. Since the pics were taken, I've sandpapered the top bar down and cleaned between the fold with a needle file, rust converter was applied right into the fold, washed off then a rust primer, after 24 hours it will be sprayed. The mesh defuser was also rusty, this has been treated and sprayed, too bad this is happening to a quality car, a galvanized dip would easlily have sorted it.
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You have probably found the paint flaking off the top bar and also in the crease, it is possible to fix (as shown) without taking the grill off but you need to get right into that fold, I used a needle file then a rust converter, zinc primer then satin black top coat.