Tuesday, August 27, 2013

Reuters: Regulatory News: UPDATE 1-French court suspends ban on Mercedes cars in coolant row

Reuters: Regulatory News
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UPDATE 1-French court suspends ban on Mercedes cars in coolant row
Aug 27th 2013, 13:37

Tue Aug 27, 2013 9:37am EDT

PARIS Aug 27 (Reuters) - France's top administrative court suspended a French ban on sales of some Daimler cars on Tuesday, ordering authorities to resume registrations of the vehicles while it weighs a definitive ruling.

France has halted sales of thousands of Mercedes-Benz cars since June in a row over coolant liquid, after the German carmaker chose not to equip the models with a new, more environmentally friendly type being phased in across Europe.

Daimler deems the new coolant unsafe.

"We expect the French authorities to start registering our vehicles within the next 48 hours," Daimler said in a statement after the Council of State issued its temporary injunction.

"The balance between all automotive manufacturers in Europe has thus been restored."

The court will now review in the months ahead whether to permanently invalidate the French government's ban - unless in the meantime Daimler withdraws its claim.

The dispute could tarnish the image of the new refrigerant R1234yf, made by Honeywell International Inc and DuPont , and makes it more likely that automakers will need to search for a new chemical that meets an EU directive on air-conditioning refrigerants.

Daimler, which says 60 percent of its sales in France are affected by the ban, argued before the tribunal on Friday that R1234yf poses a potential fire hazard.

France says its ban is legal under European Union rules designed to protect the environment and public health. It points out that Germany's KBA motoring authority itself has found that R1234yf poses no serious danger.

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