TfL brings case worth up to £1bn against carmakers over Ulez compliance

Transport for London claims polluting diesel vehicles had been able to enter clean air zone without having to pay

Transport for London is pursuing a potential £1bn legal action against car manufacturers over vehicles that it argues should not have been allowed to drive freely in the capital’s clean-air zone.

The high court heard that TfL was making allegations of “fraud and negligence” against manufacturers including Stellantis, Jaguar Land Rover, BMW and Nissan over their vehicles’ levels of diesel emissions.

The owners of the most polluting cars, largely diesels manufactured more than 11 years ago, have to pay a £12.50 daily charge to enter London’s ultra-low emission zone (Ulez), which was launched in 2019 and expanded to cover every borough in the capital in 2024.

Lawyers for TfL argue that vehicles, which should have paid a levy had entered the Ulez without charge, depriving TfL of revenue and undermining its attempts to improve air quality.

Legal action was launched in 2024 but 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. The allegations were largely rejected in a recent verdict favouring car manufacturers but lawyers are considering an appeal.

In a procedural hearing this week, first reported by the Financial Times, lawyers for TfL said manufacturers “expressly or impliedly represented” that certain diesel vehicles were compliant. Laurence Page, barrister for TfL, said: “The representations were false, made dishonestly or recklessly, alternatively negligently, and caused TfL loss,” and TfL would be seeking up to £1bn, the FT reported.

Lawyers for carmakers said TfL was making serious allegations “with potentially far-reaching consequences” but had provided “no proper details or particulars whatsoever”, according to the FT.

The details of TfL’s lawsuit have emerged after a rebuff for lawyers and clean air campaigners in the parallel “dieselgate” case earlier this month. A high court ruling rejected most of the allegations that car manufacturers had knowingly installed so-called defeat devices to rig tests.

TfL has been granted a stay until October, as lawyers in the dieselgate case consider an appeal over the verdict on which TfL’s suit would appear to depend. TfL was a signatory as a vehicle owner to the dieselgate case, brought by a number of 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.”