Another community filed a lawsuit against a group of fire truck manufacturers, alleging a price-fixing conspiracy that forced cities and fire departments to overpay for their vehicles. The latest legal action comes from the city of Ann Arbor, Michigan, and targets REV Group, Oshkosh Corporation, Pierce Manufacturing (owned by Oshkosh) and Rosenbauer America.
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The city of La Crosse, Wisconsin, filed the first lawsuit in August, claiming that the aforementioned companies conspired to restrict supply and drive up fire truck prices and that inflation alone does not explain the increases. Other entities with cases include Onalaska, Wisconsin, and fire departments in Pennsylvania, Maine and New York.
Ann Arbor’s filing claims that the companies control up to 80% of the fire truck market and that their alleged conspiracy contributed to prices doubling over the past decade, while also extending delivery times from 18 months to four years. The argument echoed La Crosse’s case from August, which stated that a fire truck priced at $500,000 in the mid-2010s now costs about $1 million, while specialized units that once sold for $900,000 now exceed $2 million.
La Crosse’s lawsuit also named the Fire Apparatus Manufacturers’ Association (FAMA) as a defendant and alleged that the manufacturers carried out their conspiracy in part through the group. According to the suit, the association facilitated the exchange of confidential, proprietary and sensitive data, which companies allegedly used to set prices and production levels. The lawsuit also claimed that the association provides a forum for manufacturers to communicate during members-only meetings.
According to La Crosse’s lawsuit, fire departments typically replace fire trucks every 10 to 15 years. It contends that rising prices and lengthy order backlogs force departments to keep the trucks in service 10 to 15 years beyond their intended lifespan. The city is seeking more than $5 million in damages.
Oshkosh Corporation issued a statement that said, “The allegations in this lawsuit are without merit, and we are defending ourselves in court.” REV Group and Rosenbauer have not responded to IEN’s request for comment.
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