Step 1: Remove the piece
Step 2: Sandblast it
Step 3: Prime it
Step 4: Paint it
Seriously, jacked up touch-ups are hard to fix. And if it is in front of the rear wheel, where all the dirt and grime basically sandblasts it daily, then there is probably a lot of touch-up paint on it. You can try wet sanding and polishing, but your best bet is probably to get it painted.
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