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Showing posts with label france. Show all posts
Showing posts with label france. Show all posts

Tuesday, 23 May 2017

France: VW face prosecution and possible substantial penalties

The Direction générale de la concurrence, de la consommation et de la répression des fraudes, France's consumer fraud watchdog, believes Volkswagen made €22.78 billion from cars sold in the country with illegal defeat devices, Le Monde reports. The French paper cited an unpulished file sent to prosecutors by the DGCCRF. It also reported that diesel emissions test-cheating saved VW €1.52 billion euros that it would otherwise have had to invest to comply with regulations.

The figures for sales and savings could ultimately be used by a court to set fines against VW, were the company to be convicted of the fraud charges that the Paris prosecutor is pursuing. The DGCCRF calculated that VW could face a penalty, capped at 10 percent of annual revenue, of €19.73 billion.

Reuters

Wednesday, 23 July 2014

CNPA claim against Chevrolet due in court in Paris on 26 September

The tribunal de commerce, Paris, will hear oral argument on 26 September in the claim brought by the CNPA as a result of the termination of Chevrolet's dealer agreements. The manufacturer has decided to resist the claim and demand indemnities from CNPA.
The delay is accounted for by the need to put together a tribunal of three judges and a rapporteur for the case, rather than having it heard by only one judge. CNPA considered it important not to have one judge only.

As we previously reported, CNPA base their claim on:
  • The brutality of the announcement of the withdrawal of the brand, reported in the media without any prior information to professionals and no notice period to allow them time to prepare for this event with respect to their customers.
  • Disloyalty Chevrolet who knowingly concealed its network for several months the decision of General Motors.
  • Non-compliance with the contractual notice period of two years, since the NFPC can prove that Chevrolet no longer fulfills many of its contractual obligations with respect to its network.
The hearing which took place on 30 May has allowed this procedure to enter a new stage but also for the CNPA to obtain the reaction of Chevrolet. Of course, the brand responds point by point to those complaints. But we also learn that compensation would be required to compensate the NFPC Chevrolet of "denigrating campaign by the trade union organization" and would also bring to an earlier halt sales in the franchise.

For the CNPA, the period of nearly four months for argument promotes a more balanced verdict (for 3 judges will have to decide instead of one), but it can also turn against him. "This late date may favor Chevrolet intimidating practices vis-à-vis dealers who still refuse to settle for decreasing financial protocol proposed by the brand," says the NFPC.

In order to avoid lengthy procedures, nearly 70% of the network has already signed an agreement with the brand. "Nobody has an interest in feeding trials with chronic issues that are crucial for distributors. In the interest of the profession, we must find solutions for everyone, "says Jean-Pierre Rinaudo, head of Vulcan group. In particular the amount of compensation has reportedly been revised upwards in many cases to facilitate the signing of agreements.
(Largely translated from an article in L'Argus, 5 June 2014 (http://www.largus.fr/actualite-automobile/affaire-chevrolet-le-constructeur-se-defend-4227379.html) - further material to be added in due course). Additional coverage available at http://news.autoplus.fr/news/1482925/Justice-Tribunal-France-Chevrolet-Concessionnaires, http://www.autoactu.com/chevrolet-contre-le-cnpa---les-plaidoiries-fixees-a-fin-septembre.shtml (subscription required), http://www.autoactu.com/chevrolet-contre-le-cnpa---les-plaidoiries-fixees-a-fin-septembre.shtml.

Thursday, 19 June 2014

Conseil d'Etat upholds Mercedes refrigerant injunction

Last summer's great story of France's ban on sales of Mercedes cars containing an air-conditioning chemical that had been banned because of its harmful effects on the environment has been wrapped up (at one level, anyay) by the Conseil d'Etat, which upheld an injunction issued last year. Meanwhile the matter continues to rumble on at the European level, with the Commission reportedly commencing action against Germany and other Member States which seem to have adopted a Nelson approach to the problem, allowing new models to be marketed under old approvals so they could take advantage of transitional provisions. And the Commission is also reported to have delivered statements of objections to Honeywell and Du Pont relating to their joint venture agreement to produice the new chemical, HFO-1234yf.

Friday, 13 June 2014

France: CNPA takes Chevrolet to court

The Conseil National des Professions de l'Automobile states on its website (and the story is also in L'Argus) that it has responded to the 'brutal' termination of Chevrolet dealers' contracts by instituting proceedings before the Tribunal de Commerce de Paris (having originally sued in the Tribunal de Grande Instance de Pontoise but found that it would take too long to come to court). A hearing took place on 2 May, and a second hearing was fixed for 30 May, but there's no news that I can find about that.

The grounds for the complaint (translated from the French using Google Translate, with a little editing thereafter) are:
  • The brutality of the announcement of the withdrawal.
- The last contract was entered into in June 2013. This is obviously accompanied by investment requirements, a few weeks before the announcement of the withdrawal.
- Contractual loyalty would demand that the network be informed earlier (and at least before the press)!
- This is especially true since the registrations were continuously growing in France. Nobody expected this to happen!
  • Chevrolet's disloyalty.
The CNPA will provide the Tribunal with evidence that GM's decision is the outcome of a long reflection, intended to favour its other brand OPEL.
  • The notice was mortgaged before its notification [or might we say in English that it was a fait accompli?].
- Advertising campaigns about destocking until the exhaustion of stocks showed it to be true.
- Moreover, the delivery time for customers is at least 5 months (and the price of vehicles has increased, officially "among others due to the increase in VAT").
  • Breach of contract by Chevrolet, comprising:
- Lack of stock.
- The removal of demonstration vehicles.
- The removal of the budget estimate tool.
- The reduction and disappearance of the communication plan.
- The elimination of sales targets and action plans.
Another case to watch. 

Tuesday, 27 August 2013

Mercedes win in France (for now)

The Conseil d'Etat sided with Daimler against the French ban on sales of four models with arguably illegal refrigerant in the AC system. The victory is only temporary, though, and lasts while the judges give the matter some more thought. However, they did express the view that there was "serious doubt" about the legality of the French government's move. Read the Press Release here and the full judgment here. I'll be practising my French on them tomorrow, and it might be worth coming back to this blog after that - there will surely be more to say, though whether I can work out what it is remains to be seen.

Friday, 9 August 2013

Mercedes refrigerant and French sales ban

The French government last month imposed a ban on the sale of Mercedes A and B class cars and CLA model, which use a refrigerant prohibited by EU rules: they have been refused registration by the Systeme d'Immatriculation des Vehicules. The problem had been bubbling under for a while (see for instance this from Lib Dem MEP Chris Davies), but it shows no signs of abating yet and I will try to expand this posting as new facts emerge (or, having already emerged, come to my attention). The French government's action is claimed to be to protect domestic manufacturers against unfair competition from the German manufacturer, and Commissioner Tajani supports the French position.

The ban relates to cars assembled since 12 June and has been imposed because of the manufacturer's refusal to stop using the air-conditioning coolant R134a, a potent global-warming gas 1,400 worse than carbon dioxide, which has been banned from new models (not, note, new cars) since the start of the year. The German authorities decided to let Daimler continue to use it, though, because it was not happy about the replacement, R1234yf (or 2,3,3,3-Tetrafluoropropene, or CH2=CFCF3).

Directive 2006/40/EC came into effect in 2011 requiring all new car platforms approved after the start of that year to use a refrigerant with a Global Warming Potential below 150: existing models were given until 2017. The  new gas has a 100-year GWP of 4, compared with the old gas's 1,430, but the Germans have safety concerns. In December last year, Mercedes testers found that it created a fireball if sprayed on a hot engine - not an unlikely occurrence in a collision. R134a is also flammable, but at higher temperatures. Both also release toxic hydrogen flouride gas.

On 25 July the tribunal administratif in Versailles ordered the French government to re-examine the case after the manufacturer argued that the correct EU safeguard procedures had not been followed, but the French government shows no signs of lifting the ban. National governments have the right to stop products being sold when they fear an incorrect application of EU regulations, and when vehicles would seriously harm the environment, and it is this safeguard procedure which the French government has invoked. (There's a lengthy story on the French website, 7pm-auto.fr.)

The relevant German authority, the Kraftfahrt-Bundesamt or KBA, propose to re-certify the new Mercedes vehicles under earlier approvals granted for older models. Unsurprisingly, the Commission has warned against such a course, and safeguard procedures allow governments to halt sales until the Commission decides whether their KBA certification complies with European law. Daimler propose to challenge the ban on the grounds that the old compound does not pose a serious environmental threat. And given that the roads of Europe have plenty of cars on them with the old stuff in their air-conditioning systems, and it will still be put into new cars for another three years, the urgency seems a little misplaced. Although Daimler's claim that "virtually all new and used cars on European roads are equipped with the proven and safe refrigerant R134a" goes a bit far - my car's air conditioning depends not on some unpleasant chemical, but on folding down the roof, always the best way.

On 8 August, it was reported that the KBA considered that the replacement gas posed no real threat to vehicle occupants, which tends to weaken Mercedes-Benz's case a little. Its interim report, published that day, confirmed that the new gas was riskier but not dangerous, a fine distinction: its full report is due next month, but here is the Reuters story from today.

The next hearing in the litigation, an appeal against the decision of the tribunal administratif (presumably to the cour de cassation), will take place on 23 August. At the same time, the European Commission notes doubts have been raised about the "lack of transparency by authorities."

Saturday, 2 February 2013

Auto 24 case: final decision from the French courts

The Auto 24 case, which I wrote about here, came back to the French courts from its short trip to Luxembourg and on 15 January 2013 the Cour de Cassation ruled that Jaguar Land Rover France was entitled to limit the number of dealers appointed to its selective distribution network in France.

The Cour de Cassation followed the Court of Justice's ruling, rejecting Auto 24's argument that JLR's limit on the number of its distributors restricted competition. The court stated that no legislation or regulation, national or EU, requires a manufacturer to justify its decision to draw up a numerus clausus as a criterion for quantitative selection. The clause in suit expressly limited the netwok to 72 dealership contracts for 109 sites, so it constituted a specified criterion whose content could be verified - which is what the Court of Justice said was needed. The supplier's freedom to define the scope and composition of its network therefore seems to be safe.

More details from Van Bael and Bellis via Mondaq (for which you might need a free subscription) here.