German luxury car maker Daimler has scored a victory against the French government, which had banned the sale of some of its models.
France’s top administrative court sided with Daimler and suspended the ban while it reviews the case, which could take up to a year.
The Conseil d’Etat voiced “serious doubt” over the legality of the two-month freeze affecting several key models.
The row is over a coolant used in the air conditioning of some Mercedes cars.
The EU has ruled it should be replaced with a more environmentally friendly refrigerant.
Daimler has refused, saying the replacement poses a potential fire hazard, though the manufacturer denies that.
France responded by blocking sales. The freeze has prevented delivery of around 5,000 Mercedes cars.
Dealers warned that thousands of jobs across the French sales network were at risk if the situation was not rapidly resolved.
The blocked models account for most of the brand’s French business and two percent of global deliveries.
Still unresolved is whether the European Commission will punish the German government for allowing Daimler to ditch the new coolant.