TfL pursues £1bn case against carmakers
Transport for London alleges fraud and negligence over Ulez compliance of diesel vehicles.
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Transport for London is pursuing a potential £1bn legal action against car manufacturers. TfL claims polluting diesel vehicles were able to enter the capital'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. These claims relate to the vehicles' levels of diesel emissions.
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Owners of the most polluting cars, primarily diesels over 11 years old, must pay a £12.50 daily charge to enter London’s ultra-low emission zone. The Ulez was launched in 2019 and expanded to cover all London boroughs in 2024.
Lawyers for TfL argue that vehicles which should have incurred a levy entered the Ulez free of charge. This, they contend, deprived TfL of revenue and hindered efforts to improve air quality.
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The legal action was initiated in 2024 but was stayed pending parallel 'dieselgate' litigation. This earlier litigation sought to establish that car manufacturers deliberately designed cars to mask their true nitrogen oxide pollution levels.
A recent high court ruling rejected most of these allegations against manufacturers. Lawyers for TfL stated in a procedural hearing that manufacturers "expressly or impliedly represented" that certain diesel vehicles were compliant. Laurence Page, barrister for TfL, told the court that these representations were false, made dishonestly or recklessly, or alternatively negligently, causing TfL loss. TfL is seeking up to £1bn, as reported by the Financial Times.
Carmakers' lawyers argued that TfL was making serious allegations with potentially far-reaching consequences but had provided no proper details, according to the FT. The details of TfL's lawsuit emerged after the setback in the parallel 'dieselgate' case.
TfL has been granted a stay until October while lawyers in the dieselgate case consider an appeal. TfL was a signatory as a vehicle owner to the dieselgate case, brought by law firms on behalf of drivers.
A TfL spokesperson confirmed the procedural hearing covers claims against vehicle manufacturers relating to alleged losses of Ulez revenues. The spokesperson added that the court indicated it will stay these claims while separate claims by vehicle owners against manufacturers proceed further.
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