A court-approved settlement reached late last week in a class-action suit against the sole importer of Peugeot and Citroen cars means garages will no longer automatically change the coolant in cars brought in for repair or check-ups. Consumers will be given the choice to do so or not, and the change will not affect warranties.
Shmuel Algam filed the suit in 2007 against the Lubinsky distributorship for Peugeot and Citroen and the importer's central authorized garage, Shroeder. It accused the companies of enforcing unnecessary maintenance as a condition in new-car warranties, requiring owners to replace engine coolant every two years or after 60,000 km of driving in all vehicles manufactured in 2000 or later. Otherwise the owners forfeited the warranty on their new cars.
But the manufacturers have no such maintenance instruction over the entire life span of the car. Algam also argued that the coolant used was not the most up-to-date available.
The battle heated up. The companies countered that the manufacturers' instructions were not applicable to those vehicles sold outside of Europe, and replacement of the coolant was important in Israel's hot climate.
The settlement was reached with no admission of any liability. It provides that within 45 days of the court ruling, the two companies would use only the most modern coolant or any other coolant recommended by the makers.
The plaintiff's lawyers estimate that a third of all Peugeot and Citroen owners will decide not to replace the coolant every two years as it will have no affect on their cars' warranty; the compromise could save the public NIS 3 million annually.
Tel Aviv District Court Judge Amiram Benyamini approved compensation of NIS 200,000 plus another NIS 200,000 for legal fees. The court said the compensation agreement was "fair and equitable" in view of the time and trouble expended on filing the class-action claim.
