Honeywell, DuPont may receive EU antitrust complaint over car coolant


Honeywell (HON +1.1%) and DuPont (DD +1.9%) reportedly face a European Union complaint for violating antitrust rules over the only car coolant chemical that currently meets new EU standards on greenhouse gas emissions.

It’s a new twist in a long-running saga over the HFO-1234yf chemical, which is expected to be a cash cow for the two companies, as it replaces ozone-depleting alternatives that can’t be included in new vehicles sold in the EU starting in 2017.

The new chemical is considered more expensive than its predecessor, and "with patent-protected supply plus a more expensive manufacturing process, a price premium will exist for some time,” an analyst says.

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Comments (3)
  • funfundvierzig
    , contributor
    Comments (4897) | Send Message
     
    This fluorochemical car A/C refrigerant, HFO-1234yf, which we call the Kullman Koolant after Ellen J. Kullman DuPont's CEO and top-ranking engineer, has spawned much controversy. Late in 2012, Daimler's demanding engineers put the Kullman Koolant through rigourous tests and found to their horror, the Koolant in a severe crash could potentially explode into a highly toxic fireball, lethally gassing trapped occupants inside the car. Daimler-Benz is now working intensely to develop a much safer and environmentally friendly alternative to the highly questionable Kullman Koolant by using CO2.

     

    The disreputable DuPont certainly has a long sordid history of illegal anti-trust conduct and monopolisation. Only a few years ago, DuPont pleaded guilty to fixing prices on its venture synthetic rubber products. Customers and consumers around the globe were cheated out of hundreds of $millions, and DuPont paid dearly in fines and settlements.

     

    It will be interesting to see what this latest EU antitrust probe reveals. Stay tuned, fellow investors.

     

    …funfun..
    5 Mar 2014, 12:52 AM Reply Like
  • manfredthree
    , contributor
    Comments (3158) | Send Message
     
    We still hear cell phones cause head cancers, but it does not seem to have hurt the various companies, or brought down the price of an iPhone. We are long HON. We are not sure why you have special negativity toward Dupont. Price fixing is much more the product of lawyers than of nasty companies and anti-social monopolies. Let us ask , when your investee company holds a patent, who do you expect to set the price or royalty ?
    5 Mar 2014, 08:00 AM Reply Like
  • funfundvierzig
    , contributor
    Comments (4897) | Send Message
     
    "We are not sure why you have special negativity toward Dupont. "

     

    Read our earlier opinions and comments on DuPont as an investor, based upon facts and documented public information. This much shrunken and shrinking Delaware-based conglomerate has been sub-performing for the past 15 years primarily as a function of an outstandingly mediocre and at times dishonest Management. …funfun..
    6 Mar 2014, 02:30 PM Reply Like
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