I'd talk to Michelin and the dealer. If things don't work out well from there, you can make a fuss. Write to your local papers about how Michelin/Kia are screwing some people over. Tell them about how they're trying to force people into a tire size likely to break (by artificially limiting a more sensible tire), and leaving them high and dry when they do--expecting them to fork over more money. Given that it's a super hyped product which many people are aware of and interested in, the paper could be interested in such a story. The paper would contact Michelin/Kia about the matter, and that could result in the tire being changed. These are great tires for the track, and well kept roads. They aren't great for Washington. I don't know much about Canadian roads in general, but I know that crossing the border into Canada, on the way to Vancouver, the highways aren't great either. All Kia really needs to do is have a Y rated (186mph) all season 18" option, and remove the 130mph limit. The only reason I got the 19's was because of the limit, and I'm not the only one. Even if I never wound up taking it to a track, I want the option, and if and when I decide to sell the car, that buyer may want the option to as well. If I have a tire issue, within the standard warranty period for the tire, you can be darned sure I'd talk to both Kia and Michelin, and if things are promptly resolved, going further. That's my advice, anyway.
The first tires I put on my first car weren't great, and were recommended by a friend as "good enough". One of the front tires (actually the front right, like yours) developed a bubble on a drive down to California. I didn't hit or drive over anything, it was just a bad tire. Since I'd got it with a replacement warranty from the tire place, they changed it. I told them to put Yokohama's on, and never had a tire issue again. After the Yokohama's I switched to Continental Control Contact Sport UHP A/S. I've not had any issue with those, on two different cars, and have smacked them hard on potholes and other such things. That car had 16" wheels with thick tires, though. The biggest issue, I think, is how thin the tires are. Just read reviews from journalists driving new Audi's and such, and getting flats. It's physics, and it's all too common. Having the option to get these tires, standard, is great, but the 18" should be free (as it is) and not limit the cars performance potential. It's a false compromise and unnecessary.
Lastly, and again I don't know about Canada, but in the US we have a chain called "Discount Tire" a.k.a "America's Tire" (in "God's Country" states). That is a really good company, they have stores all over the US, and is where I've gone for tires. Any issue with the tire, they take care of. Every person I've dealt with, at Discount Tire in multiple states, has been great. Their company policies seem to be quite excellent, in terms how they resolve things and train their staff. The people there, that I have dealt with, really know their stuff, which is unusual when it comes to anything that deals with cars and has the name "discount" in it. Too bad they don't sell cars! That may not be helpful for you, but may be of value to those in the US.
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Sorry to have been the one to break the news to you!
