Mercedes-Benz cars could be withdrawn from sale over the ongoing HFO-1234yf debacle.
Jointly developed by DuPont and Honeywell, HFO-1234yf was developed to cut the global warming potential of mobile air conditioning systems.
But Mercedes parent company, Daimler, has undertaken tests and said the refrigerant is not safe as it is highly flammable, refusing to use the gas in its new motor vehicles.
However, a European Union (EU) directive to use low GWP refrigerant applies to all redesigned models from 2013 and all new cars sold from 2017.
From January 1 this year, all European car companies must limit the GWP of air conditioning refrigerant by law.
Because Daimler is refusing to comply, a British Liberal Democrat said he has obtained evidence that shows the EU is preparing to take legal action against Germany for protecting Daimler.
British parliamentarian Chris Davies asked the Commission to confirm whether Germany would be allowed to protect Daimler and has been told that the German government could now end up in court over the row.
"A number of Mercedes cars are now being sold that don't comply with EU law and if the Commission takes action we don't know what will end up happening to them," Davies told the Greencar web site in the UK.
"EU environment laws only work if they are fair to everyone and by letting Daimler off, Germany is being unfair to manufacturers from France to Spain to the Czech Republic.
"We can’t build a stronger economy if some countries won't play by the rules."
Davies said a fine for Daimler won’t be enough – there needs to be a recall of all the illegal cars.
Models of the Mercedes A-class, B-class and SLK are believed to be in violation of the new 2006/40/EC Directive, which came into force back in January.
While Mercedes is reported to be appealing against the implementation of the law, steps are being taken to halt sales of the illegal cars if necessary, Davies said.
The automobile engineering society, SAE International, did tests of its own and found HFO-1234yf to be safe.