EC Squabble With Daimler Over A/C Coolant Heats Up

BRIGHTON, U.K. – The European Commission sends automakers based in the European Union a clear message it expects them to use newer air-conditioning coolants that have less impact on climate change than more-established products.

That is the interpretation by auto-industry experts of the announcement by the Commission, the EU’s executive branch, that it will take the German government to the European Court of Justice (ECJ) over Daimler’s use of air-conditioning coolants Brussels argues are banned.

The EU says Germany has not properly enforced its directive on emissions from air-conditioning systems in motor vehicles (also called the MAC directive) by allowing Daimler to continue to use coolant R134a.

Under the EU system, member states are responsible for ensuring compliance with directives, and the Commission can launch legal cases at the ECJ, Europe’s highest court, if they fail. If member states lose a ruling and refuse to implement it, the Commission can seek huge daily fines of many thousands of Euros payable until they comply.

The seriousness of the Daimler dispute is underscored by the added political pressure of following hard on the heels of revelations concerning fellow German manufacturer Volkswagen over falsified carbon-dioxide emissions, and amid a wave of environmental enthusiasm following Saturday’s climate change agreement in Paris.

Experts and industry insiders believe the ECJ case, whatever the outcome, will accelerate the global switchover to an alternative coolant, R-1234yf. Janet Smith, a spokesperson for Delaware-based Chemours, which makes the coolant under the name Opteon YF, says: “We predict that this will mean more cars on the road will be using the compliant coolant. We predicted in July that 9 million cars would be using the new coolant by the end of 2015.”

It may become more expensive to buy a car as a result, depending on the approach taken by automakers. The U.S. also is phasing out the use of R-134a.

Smith says her company believes “while compliance with this regulation involves some additional cost to automakers, failure to maintain the MAC directive would come at a much higher cost to the environment and society as a whole.”

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Notes Peter Cooke, professor emeritus of automotive management at the University of Buckingham in the U.K.: “The EU is flexing its muscles here. It is sending out a message that it does intend to enforce this directive. This will mean costs to the car companies as they will have to adapt their manufacturing processes. If it was unclear previously that they would have to do this, it is clear now that there will be prosecutions for non-compliance.”

Costs could be passed on to consumers, but this would depend on the market, Cooke says.

Whether other automakers and their home countries will face similar legal action is unclear. Heli Pietelä, a spokesperson for EC internal-market, industry, entrepreneurship and SMEs (small- and medium-sized enterprises) affairs, says: “As regards implementation of the MAC directive by other member states, the Commission has found no grounds to pursue infringement proceedings.”

Adds Stephen Imman, a spokesman for the German Motor Transport Authority, “As far as I know, Daimler is the only manufacturer affected by this court case.”

The EC is taking action against Germany on three counts: The MAC directive says air-conditioning systems in vehicles type-approved after Jan. 1, 2011, may not be filled with fluorinated greenhouse gases with a global-warming potential higher than 150. This means only refrigerant R1234yf is allowed. From Jan. 1, 2017, such greenhouse gases will be banned regardless of type-approvals.

Crucially, it is alleged Daimler continued to make cars type-approved for the use of R-1234yf only while using the banned R-134a after the 2011 deadline. Germany should have intervened, the EC contends.

Secondly, the EU alleges Germany in May 2013 allowed Daimler to circumvent the application of the coolant directive. Finally, the EU accuses Germany of failing to penalize Daimler under the rules.

“We remain of the opinion that the allegations made by the EU are unfounded,” a German government spokesperson responds. “This position will be represented in the litigation.”

Daimler has announced it will comply with the legislation by 2017 and switch to the new coolant. And while it says there will be costs – arguing R1234yf is dangerously flammable and fire-retardant sprays will need to be fitted to vehicles – it says its competitive position will not be weakened because other manufacturers use the old coolant, EC claims to the contrary.

 “I do not know to what extent other European car manufacturers use coolant R134a instead of R1234yf, but in fact most of them do so,” Daimler spokesman Matthias Brock says.

Daimler, meanwhile, is testing a coolant based on carbon-dioxide gas it plans to use in air-conditioning systems of E- and S-Class cars from 2017, but other models will use R1234yf until the CO2 technology becomes more feasible.

“The reference to the European Court of Justice is within the context of infringement proceedings between the European Commission and the Federal Republic of Germany,” Brock says. “Daimler AG is not involved directly. However, we will of course assist the federal government and the European Commission by providing all information concerning our company.”

Daimler always has followed its own government’s advice on such matters, Brock adds.