Texas AG Investigates Firetruck Manufacturers for Anticompetitive Scheme
Summary
Texas Attorney General Ken Paxton has opened an investigation into firetruck manufacturers REV Group, Inc., Oshkosh Corporation, and Rosenbauer Group for alleged anticompetitive conduct. The investigation follows complaints of dramatic price increases and delivery delays impacting Texas municipalities and fire departments.
What changed
Texas Attorney General Ken Paxton has initiated an investigation into REV Group, Inc., Oshkosh Corporation, and Rosenbauer Group for potential anticompetitive practices in the firetruck manufacturing industry. The investigation was prompted by complaints from Texas municipalities and fire departments regarding significant price hikes, some reaching hundreds of thousands of dollars per vehicle, and substantial delivery delays for essential firefighting equipment. Civil Investigative Demands (CIDs) have been issued to the named companies to gather information on their business practices, which may include illegal market activities following industry consolidation and plant closures during peak demand.
This action signals a heightened focus on ensuring fair pricing and timely delivery of critical public safety equipment. Municipalities and fire departments in Texas that have experienced excessive price increases, delivery delays, or other suspicious conduct from firetruck manufacturers are encouraged to contact the Attorney General's Antitrust Division. While no specific penalties have been announced, the investigation implies potential legal action and enforcement measures if anticompetitive conduct is confirmed, which could impact future procurement processes and supplier relationships for public safety equipment nationwide.
Source document (simplified)
Attorney General Ken Paxton has opened an investigation into firetruck manufacturers for potential anticompetitive conduct following complaints raised by Texas municipalities and their fire departments.
In recent years, fire departments across Texas have experienced dramatic price increases for essential firefighting equipment—including aerial ladder trucks, pumper engines, tanker trucks, and rescue vehicles—along with significant delays in delivery. This has strained local budgets and forced firefighters to rely on aging or inadequate fleets, hampering their ability to protect Texas communities. These price spikes, often reaching hundreds of thousands of dollars per vehicle, have coincided with industry consolidation and suspicious plant closures during peak demand.
“Our state’s firefighters put their lives on the line to keep our communities safe, and departments deserve fair access to reliable, up to date equipment at reasonable prices,” said Attorney General Paxton. “I will not allow public safety or the well-being of our firefighters to be compromised by unethical and illegal corporate activity.”
The manufacturers under investigation include REV Group, Inc., Oshkosh Corporation, and Rosenbauer Group. Attorney General Paxton has issued Civil Investigative Demands (“CIDs”) demanding documents and information related to their business practices from all three companies as part of this ongoing investigation. Public safety remains one of Attorney General Paxton’s highest priorities, and he stands ready to combat illegal market activities that may compromise Texans’ safety and the safety of Texas firefighters.
Attorney General Paxton's investigation has uncovered multiple potentially unlawful price hikes impacting Texas fire departments, many of which have already submitted complaints. Attorney General Paxton encourages Texas counties, cities, and other municipalities that have experienced excessive price hikes, delivery delays, or other suspicious conduct by firetruck manufacturers or dealers to contact the Office of the Attorney General’s Antitrust Division with any relevant information, at [email protected].
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