Transport for London (TfL) is pursuing a potential £1bn legal action against car manufacturers, alleging that certain diesel vehicles were able to enter London's clean-air zone 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, concerning their vehicles’ diesel emissions levels.
TfL lawyers argue that these vehicles, which should have incurred a levy, entered the Ultra-Low Emission Zone (Ulez) without charge, leading to a loss of revenue for TfL and undermining efforts to improve air quality. The Ulez, launched in 2019 and expanded across all London boroughs in 2024, requires owners of the most polluting cars, primarily diesels over 11 years old, to pay a daily £12.50 charge.
The legal action, initiated in 2024, was stayed pending parallel “dieselgate” litigation. While a recent verdict in the “dieselgate” case largely favoured car manufacturers, rejecting most allegations of knowingly installed defeat devices, lawyers are considering an appeal. TfL has been granted a stay until October, as the outcome of the “dieselgate” appeal may impact TfL’s suit.
A TfL spokesperson stated that this procedural hearing covers TfL’s claims against certain vehicle manufacturers related to alleged Ulez revenue losses, adding that the Ulez is a key mechanism in TfL’s efforts to improve London's air quality. The court indicated it would stay these claims while separate claims by vehicle owners against manufacturers proceed.