Daimler's expected summer launch of the new Mercedes-Benz S-Class saloon won't be delayed by the chance the German automotive company will have to use Honeywell's new air-conditioning refrigerant according to Reuters.
"The S-Class will ramp up as planned and enter the market this summer," a company spokesman said according to Reuters, denying that its refusal to comply with European Union legislation over the use of the new refrigerant could force authorities to stop its launch.
The company is hoping that the success of the new S-Class, which will be released in Europe in July, will help balance out their weak first half and achieve a flat underlying full-year profit according to a company spokesman.
The S-Class is expected to be a top-seller for the company, thanks to its estimated "double-digit profit margins" according to Reuters.
The new vehicle was approved for sale in Europe under the agreement that it does not use the R134a air-conditioning refrigerant, a hydroflurocarbon that could warm the climate 1,400 times more than carbon dioxide when it's released into the atmosphere according to Reuters.
"While news over a delay to the S-Class are obviously of great interest to the German press, we are somewhat more skeptical as to whether the (refrigerant) issue can really delay the launch of the vehicle," Credit Suisse said in a note to clients.
Daimler has refused to use the HFO-1234yf refrigerant, which is the only one that meets all of the European Union requirements and is supplied by Honeywell.
"We would hope that the KBA understands that Daimler's concerns over HFO-1234yf are legitimate and that an amicable solution to the issue can be found," Credit Suisse said according to Reuters.
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