City of Milwaukee sues leading fire truck manufacturers, alleging price gouging and delayed supply
MILWAUKEE (CBS 58) -- The city of Milwaukee has filed a new lawsuit against leading fire truck manufacturers, claiming they are price gouging and intentionally delaying the delivery of equipment.
The class action lawsuit was filed in federal court.
The city accuses three manufacturers of colluding to manipulate higher prices, plus delay the delivery of fire trucks that were already bought and paid for.
Eric Daun is the president of the Milwaukee Professional Fire Fighters Local 215. Daun told us, "Price gouging and the delay in rigs is unacceptable, because it does put the citizens and the members at risk."
The three manufacturers -Oshkosh Corporation, REV Group, and Rosenbauer America- together control between 70-80% of the US fire truck market. Also named in the suit is the Fire Apparatus Manufacturers’ Association.
The suit alleges they worked to "suppress the supply and raise the prices" of fire trucks.
Daun said, "This is a national problem."
Industry leaders have testified before Congress, like Edward Kelly, the general president of the International Association of Fire Fighters. In September, he testified, "Steadily and purposefully, apparatus manufacturers have rigged the game."
Milwaukee's lawsuit claims "direct competitors" would participate in "purchasing roundtables" at FAMA meetings, "to exchange competitively sensitive, nonpublic information," "coordinate the suppression of Fire Truck supply, and raise Fire Truck prices."
An outside attorney hired by the city had no comment on the suit.
A spokesperson for REV Group said the company believes the lawsuit is meritless and they intend to challenge the allegations in court.
According to the suit, the cost of ladder trucks has doubled in the past 10 years, and the cost of pumper trucks has tripled.
As a result, the Milwaukee Common Council recently had to allocate an extra $8 million to MFD's $2 million equipment budget.
Daun said, "Five years ago, that $10 million would have bought us 10 apparatus, if not 12. Now it's getting us five."
Delays are also an issue.
Three engines purchased in January 2025 for more than $1.1 million each have still not been delivered. Two ladder trucks purchased in June 2025 for nearly $2 million each have also not been delivered.
Daun said national guidelines recommend a 15-year lifespan for trucks, but MFD has rigs that are pushing 20 years. And wear and tear from more than 110,000 runs a year breaks them down.
"It does jeopardize response time," Daun said, "Because if a rig is out of service because it's getting even a tire replaced, that's an hour where that area is not covered."
So far, the companies and organization that are being sued have not yet responded to the city's complaint.
The next hearing in federal court has not yet been scheduled.