BMW may create unlawful "secret warranty" to replace defective run-flat tires for BMW 3 Series automobiles.

Investigation and pending class action lawsuit against BMW alleging that BMW has an illegal secret warranty on the run-flat tires on its 2006 and 2007 BMW 3 Series cars.

BMW equiped its cars with run-flat tires which are defective and not fit for their ordinary purposes--the tires often wear out with less than 10,000 miles of use! The 3 Series cars come equipped with Bridgestone run-flat tires, which are designed to enable drivers to continue driving a limited number of miles with a punctured tire. The problem is that the tires wear unevenly and prematurely. Many BMW owners are having to replace the tires in less than 10,000 or 20,000 miles. I n January 2007, BMW informed its dealers that owners with worn and rough-riding run-flats who had driven less than 10,000 miles were eligible for free tires and labor. Owners with 10,000 to 20,000 miles on the odometer were eligible for a 50% discount on the tires and labor.

The pending class action alleges BMW's advice to its dealers concerning free or discounted tires is a "secret warranty;" "secret" because BMW failed to provide all BMW owners with notice of the warranty's existence as required by California's secret warranty law. The class action complaint seeks a court order requiring BMW to inform all California owners and lessees of the existence of the warranty and to provide a means of reimbursing owners who went out-of-pocket for replacement tires who otherwise would have received the benefit of the secret warranty.

The suit also alleges that BMW violated the California lemon law by selecting these defective tires for the 3 series cars and that consequently owners and lessees are entitled to damages.