Transport for London (TfL) is pursuing a legal action worth up to £1bn against several car manufacturers, alleging that polluting diesel vehicles were able to enter London's ultra-low emission zone (Ulez) without paying the required charge. The high court heard that TfL is making allegations of "fraud and negligence" against manufacturers including Stellantis, Jaguar Land Rover, BMW, and Nissan over their vehicles' diesel emissions levels.
Background of the Ulez and the legal case
The Ulez, launched in 2019 and expanded to cover every London borough in 2024, requires owners of the most polluting cars—largely diesels manufactured more than 11 years ago—to pay a £12.50 daily charge to enter the zone. TfL's lawyers argue that vehicles that should have paid the levy entered the Ulez without charge, depriving TfL of revenue and undermining efforts to improve air quality.
Legal action was initially launched in 2024 but was stayed pending parallel "dieselgate" litigation, which sought to establish that car manufacturers deliberately designed cars to mask the true level of nitrogen oxide (NOx) pollution. That case largely rejected the allegations in a recent verdict favouring car manufacturers, but lawyers are considering an appeal.
Details of the allegations
In a procedural hearing this week, first reported by the Financial Times, TfL's barrister Laurence Page stated that manufacturers "expressly or impliedly represented" that certain diesel vehicles were compliant. He said: "The representations were false, made dishonestly or recklessly, alternatively negligently, and caused TfL loss," adding that TfL would seek up to £1bn.
Lawyers for the carmakers responded that TfL was making serious allegations "with potentially far-reaching consequences" but had provided "no proper details or particulars whatsoever," according to the FT.
Impact and next steps
The details of TfL's lawsuit emerged after a rebuff for lawyers and clean air campaigners in the parallel dieselgate case earlier this month. A high court ruling rejected most allegations that car manufacturers knowingly installed defeat devices to rig tests. TfL has been granted a stay until October, as lawyers in the dieselgate case consider an appeal on which TfL's suit appears to depend.
TfL was a signatory as a vehicle owner to the dieselgate case, brought by law firms led by Leigh Day on behalf of 1.6 million drivers. A TfL spokesperson said: "This procedural hearing covers TfL's claims against certain vehicle manufacturers relating to alleged losses of Ulez revenues. The Ulez is a key mechanism in TfL's efforts to improve air quality in London. The court indicated that it will stay these claims, while separate claims by vehicle owners against vehicle manufacturers proceed further."
