Wow, that is pretty bad. Rust that bad is starting to affect the structural integrity. When my WK2 gets delivered, definitely going to hit that area with anti-corrosion spray.I was thinking that too. See this thread by JeepJunkie http://www.jeepgarage.org/f107/should-this-look-so-corroded-42961-2.html . Whenever I rotate tyres, I give the hubs, stub axle and nut, just a touch of WD40 being very careful not to get any on the discs. It penetrates well and leaves a fine protective oil film. I'm not in favour of covering it with rust preventative gunk. I could interfere with the hub to wheel friction.