Millions of German drivers face possible driving bans after new court ruling shakes car industry

New Court Ruling Sends Shockwaves Through the Auto Industry

The highest administrative court of the state of Schleswig-Holstein (Oberverwaltungsgericht Schleswig) has just thrown the automotive world into fresh turmoil. This time, it’s not only about the original Dieselgate scandal, but also about the software updates that manufacturers rolled out to “solve” the issue. According to the court, those very updates are actually illegal.

The central problem lies with what’s called “thermal windows”—software settings that reduce emissions cleaning at lower outside temperatures. While this helps to protect the engine, it means the cars spew out more harmful substances when things get chilly. The court found these thermal windows to be in violation of EU law, leaving millions of cars still emitting too much pollution and at risk of being taken off the road.

Not Only Volkswagen: A List of Household Names Caught Up

If you thought this was Volkswagen’s cross to bear, think again. Other major brands—Audi, Skoda, BMW, Mercedes, Toyota, Volvo, Opel, Fiat, and Renault, to name a few—also used similar software. Legal experts estimate that between 7 and 10 million vehicles could be affected. For drivers, this means the grim possibility of

• their car being recalled for a fix
• or, in the worst-case scenario, being slapped with a driving ban.

The Deutsche Umwelthilfe (DUH), Germany’s long-term environmental watchdog and a fierce opponent of the automotive industry, has seized the moment. Jürgen Resch, the DUH chief, declared that the Kraftfahrt-Bundesamt (KBA), Germany’s federal transport authority, must ensure that 7.8 million Euro 5 and Euro 6a–c diesels are either properly updated or, failing that, parked for good. The latter would amount to a real-life ban: those cars can no longer legally take to the streets.

Regulators, Manufacturers, and the Courts: A Legal Tug-of-War

Volkswagen and the KBA are pushing back, contending that the thermal window is essential to prevent engine damage—and that without it, drivers’ safety could be at risk. But the judges have made their priorities clear: environmental protection trumps the safeguarding of engine parts. The European Court of Justice had already made a similar ruling in 2022.

The verdict explicitly states that the KBA’s approval of the updates in 2016 was unlawful. Not only that, there turned out to be not just one, but two prohibited defeat devices lurking in the mix. Now the regulator themselves is under pressure, as the KBA is ordered to force Volkswagen into action.

If you drive a diesel in the Euro 5 or Euro 6a–c emissions classes, you’re in the danger zone. In practice, nothing concrete has happened just yet—the ruling isn’t final, as VW has appealed to Germany’s highest administrative court (the Bundesverwaltungsgericht in Leipzig). However, the odds are growing that millions of cars could be added to an official KBA list for recalls or bans.

Technical Dead Ends and Legal Labyrinths

For many models, retrofitting a fix is nearly impossible from a technical standpoint. Some cars with modern SCR (AdBlue) systems can, in theory, be modified, but owners face higher costs, increased fuel consumption, and reduced engine longevity—hardly tempting. For older diesels, it’s beginning to look like a dead end.

Lawyers are already gearing up for another round of litigation. If your car turns out to have had an illegal software update, that counts as a defect, entitling you to a refund. But if you file a claim, the payout is usually reduced based on the miles you’ve driven. For ageing models, this means you likely won’t get much—though for expensive premium cars with a solid residual value, it could still be worth your while.

Drivers now have some tough decisions to make:

Is it worth filing a claim, or should I just keep my trusty diesel as long as it’s still allowed on the road?

After all, despite all the legal wrangling, many older models remain mechanically sound and have plenty of life left.

For the moment, the advice for diesel drivers is fairly simple: keep calm and stay alert. Check your car’s emissions class, monitor notifications from both manufacturers and the KBA, and brace yourself for possible lawsuits or recall notices. Whether or not we’ll see a sweeping driving ban in the end is up to Germany’s supreme administrative court to decide. But one thing is crystal clear: the Dieselgate fallout isn’t going anywhere any time soon.