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Alternators do not generally over heat, and the do not contain fluid. Since it is red in color I would assume that you are spraying Transmission Fluid from a cooler line, or power stearing fluid. Power stearing is much more likely since the power stearing pump is also belt driven (just like the alternator), and commonly mounted very near the alternator.

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Q: What makes the alternator over heat and some red fluid spray all over?
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