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Discussion Starter #1
About 1,600 jobs are in jeopardy if the French gov maintains the ban on Mercedes A,B and CLA class models due to the Freon used in the A/C units. The Freon is banned across the EU but France is the only one who has sanctioned the vehicles.

The ban is threatening dealerships, Jean-Claude Bernard, president of the group of Mercedes distributers and repairers said the ban has hit 50 percent of Mercedes sales in France.

Almost 5,000 cars sold cannot be delivered to our clients and registered. This means 1,600 jobs, out of a total of 11,000 in the distribution network in France, are threatened if the situation continues. We are seriously concerned that this situation will lead to the bankruptcy of some members of the network, who are already struggling.

Mercedes is complaining that its dealer network is being forced to pay the ultimate price for a national dispute between France and Germany (what else is new?). Last week it appeared that the ban may be overturned when a Versailles court suspended the sanctions at the request of Mercedes Benz France.

The court gave French authorities 10 days to reconsider their position, but the following day Paris used an EU rule which allows it to protect its interests by temporarily restricting certain imports to maintain the ban.

The last part is what this is really about, French car makers are on life support borrowing money from an already tapped out French Government and lumbering around with a bloated workforce that they cant legally reduce. So France is trying to protect its national interests in Peugeot and Renault.
 

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It seems like such a silly problem since it all stems from some cooling liquid. I don't understand why they can't just do some tests to figure out if the one liquid is super flammable or not. If it is flammable, we shouldn't use it. If it isn't, we should use it. Then all the Frenchmen can have their Mercedes and the world will be a little bit happier.

Its also crappy for all the dealerships who can't sell cars due to something completely outside their control. Can't both sides see that a resolution is the best way forward?
 

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wow

This sucks for people on all sides, mercedes losing out on sales, people losing jobs and customers unable to get these cars, hopefully they can get things worked out.
 

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Discussion Starter #4
It seems like such a silly problem since it all stems from some cooling liquid. I don't understand why they can't just do some tests to figure out if the one liquid is super flammable or not. If it is flammable, we shouldn't use it. If it isn't, we should use it. Then all the Frenchmen can have their Mercedes and the world will be a little bit happier.

Its also crappy for all the dealerships who can't sell cars due to something completely outside their control. Can't both sides see that a resolution is the best way forward?
I'm sure both sides know exactly how to resolve this but i believe vision is clouded by the dynamics of the French/German relationship...

Mercedes has done their own independent testing and found the new Freon R1234yf to be more flammable than the banned R134A. However France is saying the tests are invalid and Germany is saying the French are cracked. But whats interesting about the now mandated R1234yf is that its more expensive, less efficient and requires extra A/C equipment to equal the performance of R134A.
 

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About 1,600 jobs are in jeopardy if the French gov maintains the ban on Mercedes A,B and CLA class models due to the Freon used in the A/C units. The Freon is banned across the EU but France is the only one who has sanctioned the vehicles.

The ban is threatening dealerships, Jean-Claude Bernard, president of the group of Mercedes distributers and repairers said the ban has hit 50 percent of Mercedes sales in France.

Almost 5,000 cars sold cannot be delivered to our clients and registered. This means 1,600 jobs, out of a total of 11,000 in the distribution network in France, are threatened if the situation continues. We are seriously concerned that this situation will lead to the bankruptcy of some members of the network, who are already struggling.

Mercedes is complaining that its dealer network is being forced to pay the ultimate price for a national dispute between France and Germany (what else is new?). Last week it appeared that the ban may be overturned when a Versailles court suspended the sanctions at the request of Mercedes Benz France.

The court gave French authorities 10 days to reconsider their position, but the following day Paris used an EU rule which allows it to protect its interests by temporarily restricting certain imports to maintain the ban.

The last part is what this is really about, French car makers are on life support borrowing money from an already tapped out French Government and lumbering around with a bloated workforce that they cant legally reduce. So France is trying to protect its national interests in Peugeot and Renault.
You are definitely right about French automakers being on life support. I just read this article that says the French government has approved a 7 billion euro loan to PSA/Peugeot-Citroen. Last year PSA lost about 5 billion euros, and each month it is losing 00 million euros.

Best of luck to them, but it doesn't sound like good news.
 

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Discussion Starter #6
You are definitely right about French automakers being on life support. I just read this article that says the French government has approved a 7 billion euro loan to PSA/Peugeot-Citroen. Last year PSA lost about 5 billion euros, and each month it is losing 00 million euros.

Best of luck to them, but it doesn't sound like good news.
Yea the French gov is running the automakers into the ground, about a year ago Peugeot tried to fire a chunk of employees (8,000) to free up cash flow but the Unions supported by the Socialist government of Hollande in pure bred economic insanity have declared war on the automakers for trying to keep thier doors open.

employees are rioting and shutting down plants, demanding negotiations be started from the beginning. Hollande is doing nothing but making the whole situation worse as he is on record stating he will make it extremely difficult for companies to fire workers, saying under his plan it would be unaffordable to lay off workers and that assets such as manufacturing facilities should be sold before employees are laid off.

Which brings us to the next bout of insanity, If companies are forced to sell production facilities before laying off workers, where exactly are these workers supposed to work? Oh right, free money...
 
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