I took the car to PepBoys, He noted the damage and called Michelin. (they open a case ). Michelin guy offered 35% off new tire. Essentially saying this is not a manufacturing defect. He says you might have hit a pot hole and this side wall rubber did its job in saving rim . I will now try to contact Michelin myself and supply them photographs etc. I may have hit a pot hole but that is what tires do all the time, they need to maintain their integrity while doing so.
Any suggestions ?

 

Yeah that looks like a manufacturer defect, I had a slit from a pothole and mine looks nothing like that.

 

Here is a pic of a side wall that hit a pothole, as well as the damage to the rim.

 

It's clear that your Michelin tires have a defect. You should receive brand new tire(s) installed at no-charge to you to replace the defective tire(s), not a 35% discount. When you contact Michelin let them know that many hundreds of people are waiting to learn if Michelin is going to stand behind their products. Negative comments made on message boards can severely damage brand reputations. One misstep of Michelin not doing the right thing could cost them tens of thousands of dollars in lost sales. If Michelin is smart they will take care of this appropriately.

Give Michelin the link to this thread if necessary ► https://www.clublexus.com/forums/newreply.php?do=newreply&p=10174603

We'll be anxious to hear what Michelin does...

 

Today I got a good resolution. After pepboys I chatted online with some person who was offering after 30 minutes of back and forth 70% off but I still felt that I should not pay for installation. I tried to post on Lexus's and Michelin's FB page but no luck they regulate the content. Then I posted a reply to their post of JD Powers awards. This got me a quick reply and finally a call from their rep. In the end it is 90% off two tires. Tread depth was 7/32 (I was told new tires are 10/32 ) I will pay for installation. It will overall cost me about 110 after installation and taxes in the end. Thanks for your encouragement and confidence in diagnosis, it kept me motivated.

 

Glad you are happy with the resolution. I'm curious - did the Michelin representative admit that there was a factory defect that caused the slits in the two tires?

 

I did not seek confirmation if it was a factory defect, I guess it is implied. Yesterday the online person had agreed for 70% off when I told him that Pep Boy personnel did not provide them with an unambiguous description of damage and I wanted to show them a pic of the damage. He did not provide any email address but said will do 70% as tires were 30% used. Michelin does not cover the installation cost as policy, so I asked for 90% which happened only after FB post and call from rep.

I will check the old tires after installation.

 

 

Thanks, Post pictures and keep the thread alive :-) . It builds a knowledge base as well.