SAN DIEGO (FOX 5/KUSI) — The San Diego City Attorney’s Office has filed a lawsuit against fire truck manufacturers, alleging that the companies eliminated competition in markets leading to higher prices, reduced production capacity, putting a strain on public safety budgets and driving up costs for taxpayers as a result.
The lawsuit alleges that REV Group, Oshkosh Corporation and its subsidiary Pierce Manufacturing, Boise Mobile Equipment (BME) and private equity firm American Industrial Partners forced cities and fire departments to pay more as a result of a “years-long anticompetitive scheme” that consolidated the industry.
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Among the allegations cited by City Attorney Heather Ferbert were that the companies delayed their deliveries of fire trucks, forcing cities to turn to overpriced proprietary parts and essential equipment.
“Fire trucks aren’t nice-to-haves — they’re essential equipment that every community depends on to save lives,” said Ferbert. “When corporations exploit that need and illegally corner the market, taxpayers and firefighters pay the price.”
According to the complaint, the defendants’ strategy turned nine companies that were formerly independent builders into subsidiaries of just two corporations.
After acquiring their competitors, the corporations shut down factories, restricted output and used backlogs to justify hiking up the prices for public agencies seeking to purchase fire trucks, the complaint stated.
It also alleged that Pierce Manufacturing and Oshkosh forced cities into buying more expensive proprietary parts due to more restrictive agreements and warranty rules.
“This lawsuit seeks to stop these unlawful practices, restore competition, and protect public‑safety budgets statewide,” Ferbert stated.
The city attorney has requested the court to order the defendants to pay the city of San Diego in restitution, as well as pay other monetary damages and civil penalties, plus any fees associated with filing the lawsuit.
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