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2nd Gen Ram Tech1994-2001 Rams: This section is for TECHNICAL discussions only, that involve the 1994 through 2001 Rams. For any non-tech discussions, please direct your attention to the "General discussion/NON-tech" sub sections.
Paint problems started for ALL manufacturers in the late 80's, early 90's, due to a change in the painting process, mandated because of EPA regulation. Clearcoat peeling, paint fade, etc, were all due to a lack of UV resistance in the new paint process. Underhood heat has nothing to do with it. The sun shining on your hood in a parking lot gets the hood hotter than engine heat will.
The insulator under the hood is for noise reduction, not to protect the pain from engine heat.