Michelin, Honda reach run-flat tyre settlement

ERJ staff report (TB)

Greenbelt, Maryland -- Michelin North America Inc. and American Honda Motor Co. Inc. have agreed to compensate owners and lessees of certain Honda Odyssey and Acura RL models originally equipped with Michelin's Pax run-flat tyre/wheel system as part of a settlement of a class action lawsuit.

Michelin agreed to a supplemental three-year/36,000-mile treadwear warranty on the tyres and also will offer $110 rebates on a spare tyre kit and partial reimbursement for past replacements of the tyres.

Honda will offer its customers who purchased affected vehicles $300 rebates toward the purchase of a new vehicle of the same type without Pax system tyres.

The two also agreed to pay $3 million to the plantiffs' attorneys to settle their fees, costs and expenses.

Federal District Court Judge Roger Titus gave preliminary approval on Jan. 14 for the settlement. The court is giving potential class members a chance to object to terms of the settlement or opt out of it completely, and the deadline for requests is May 8. A final hearing for the settlement has been scheduled for June 1.

Both Michelin and Honda have been involved in an ongoing court battle over the run-flat tyres that were original equipment on 2005-07 Honda Odyssey Touring and 2006-07 Acura RL models. Lawsuits filed against the companies alleged they failed to notify consumers that “neither they nor any third parties maintained sufficient repair or replacement facilities” to meet consumers' needs for the tyres, that the costs of repairing and replacing the tyres is unreasonable and the tyres are “defective and susceptible to premature wear.”

Cases initially filed in Arizona, Illinois, Florida and New York were consolidated Feb. 15 in the District of Maryland.

In early 2007, Michelin said it had equipped nearly 75,000 vehicles with Pax systems in the US since 2003.

From Tire Business (A Crain publication)