PITTSBURGH, Pa. (WHTM) — Another Pennsylvania city filed suit against a group of fire truck manufacturers, alleging monopolistic practices.
The City of Pittsburgh is the latest city to file suit in federal court against REV Group, its parent American Industrial Partners, and its subsidiaries, including KME, Spartan, Ferrara, and Smeal; the Oshkosh Corporation, Pierce Manufacturing, and Boise Mobile Equipment.
Allentown filed suit in April and Philadelphia filed last year.
Pittsburgh alleges that the consolidation of fire apparatus companies substantially lessened competition and allows the defendant companies to dominate the supply of fire apparatus and reduce output, causing shortages, delivery delays, and higher prices.
“By hiking prices for trucks and replacement parts without competition, the defendants have made it harder for the City of Pittsburgh and other municipalities across the country to make the required investments in lifesaving safety services and put the burden back on our communities,” Pittsburgh Mayor Corey O’Connor said.
“Firefighters depend on these vehicles every day to protect lives and property,” said Ralph Sicuro, President, Pittsburgh Fire Fighters IAFF Local No. 1. “When the cost of essential fire apparatus is artificially increased, every community pays the price. We support the City’s efforts to pursue accountability and ensure that taxpayer dollars are spent fairly, transparently and in a competitive marketplace.”
Numerous cities, including Los Angeles and Milwaukee, have filed similar lawsuits.
“The LA County Fire Department has experienced dramatic price increases and long delays in receiving delivery of fire trucks,” LA County Fire Chief Anthony Marrone said in February. “These market conditions strain our budget and are a wasteful diversion of public funds needed to support our mission of protecting lives, environment and property.”
The lawsuits contend that nearly a dozen once-independent companies were consolidated into REV Group, followed by the closure of plants in Roanoke, Va., and Nesquehoning. Those closures, the cities allege, ballooned a production backlog while corporate officials celebrated “price realization.”
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Numerous lawsuits, including Pittsburgh’s, were consolidated into a single suit in U.S. District Court for the Eastern District of Wisconsin, where several of the companies are based.
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