Mercedes-Benz distributors in France say the current refusal by French authorities to certify certain models is having a “disastrous effect” on sales which could see some outlets file for bankruptcy.
France and Germany are squaring up to each other in a war of words that has led to Mercedes A, B and CLA vehicles being uncertified as Paris views the German automaker’s use of the r134a refrigerant as harmful to the environment.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Mercedes says it is currently taking legal steps to address the situation, but its distributors, employing 11,000 staff in France, are warning the situation could lead to partial redundancies of up to 1,500 as 5,000 vehicles currently remain undelivered.
“The present situation is having a disastrous effect on our sales, a situation amplified by our competitors, who are not wasting time in using this argument to improve their own performances and divert our loyal customers,” said a letter from Groupement des Distributeurs et Reparateurs president, Jean-Claude Bernard and his senior colleagues sent to French Environment Minister, Philippe Martin, last week and seen by just-auto.
“This situation is resulting in a completely unfair competitive disadvantage, to which we are incapable of responding and which will profoundly handicap our businesses.”
“We seriously fear this situation will lead to a filing for bankruptcy by certain of our, already weak, network members.”
Earlier today (30 July) Bernard told just-auto from the distributor grouping’s headquarters in Le Mans the issue had echos of protectionism, with domestic French auto sales struggling against a weak European economic backdrop.
But in contrast to French automakers’ woes, Bernard said Mercedes was performing well, claiming the brand had the strongest growth in France among premium manufacturers.
“We have the feeling our customers, our staff, our businesses, are suffering from a conflict which, in our view, is more anchored at a political, European level,” said Bernard.
“We call on the competent authorities in the name of defending our businesses, our partners and our customers, to resolve this more and more unsustainable, unfair situation for Mercedes-Benz French distributors.”
A decision by the Tribunal de Versailles last week to allow Mercedes vehicle certification, was overruled by France’s Environment Ministry, which invoked Article 29 of the EU air-conditioning directive allowing Members to refuse vehicle registration for six months where a risk to the environment was involved.
Mercedes contends the European Union recommended r1234yf refrigerant can be highly flammable in certain conditions, while Brussels insists the German’s preferred r1234a variant has high pollutant levels.
