Los Angeles County Files Antitrust Lawsuit Against Fire Truck Manufacturers

Los Angeles County has initiated a lawsuit against a private equity firm and several corporate fire truck manufacturers, alleging breaches of antitrust and unfair competition regulations. The case claims that years of mergers and acquisitions have reduced competition in the market for new fire trucks, engines, and equipment, resulting in exorbitant price increases.

The lawsuit, filed on February 12 by the L.A. County Office of County Counsel, states that costs have risen dramatically, in some cases doubling. The diminished number of suppliers has also led to delays in deliveries of crucial parts and equipment, prolonging the wait time for the county’s fire department to repair its out-of-service vehicles.

Impact on Firefighting Readiness

The alleged monopolistic practices have hindered the timely procurement of fire trucks and engines, especially critical during a period marked by increasing fire risks due to climate change. Recent events, such as the Palisades and Eaton fires— which destroyed 18,000 properties and resulted in 31 fatalities—highlight the urgency of maintaining firefighting readiness in the county.

“These companies have greatly inflated prices and caused unprecedented delays, placing the burden on our communities,” stated First District Supervisor Hilda Solis. “These vehicles are vital for public safety, and we are taking steps to hold these firms accountable and ensure fair competition, so taxpayers aren’t left paying excessive costs for essential equipment.”

Details of the Lawsuit

The suit specifically targets American Industrial Partners, REV Group, Oshkosh Corp., and Boise Mobile Equipment for allegedly infringing both federal and state antitrust laws. The county, supported by the state, seeks to reverse these mergers and obtain restitution for the inflated prices claimed by L.A. County Fire and other departments.

In a recent budget meeting, Fire Chief Anthony Marrone pointed out that 22% of the fire vehicles in service urgently need replacement. He reported that the cost for a fire engine has soared from about $600,000 to around $1.1 million, while a hook-and-ladder truck’s price has risen from $1 million to approximately $2.1 million.

Long-Term Consequences

The lawsuit claims that Oshkosh employs anticompetitive tactics, notably mandating customers purchase only proprietary parts from its subsidiary, Pierce Manufacturing. This approach leads to significant surcharge on necessary replacement parts, as per the allegations in the lawsuit.

Fire Chief Marrone emphasized that prolonged delivery times for fire equipment have become a major issue, straining the department’s budget and diverting public funds from its mission of safeguarding lives and properties. He also expressed concerns over “revenue uncertainties” due to property tax fluctuations impacting the department’s $1.8 billion budget, complicating preparations for upcoming major events like the FIFA World Cup and the 2028 Los Angeles Summer Olympics.

Conclusion

County Counsel Dawyn R. Harrison conveyed that the lawsuit serves as a strong message against practices that violate antitrust laws and inflate prices for public safety tools. As of now, Oshkosh and Boise Mobile Equipment have not commented on the lawsuit. The case is being prosecuted by the County Counsel’s Affirmative Litigation and Consumer Protection Division in the United States District Court in Los Angeles.