Automotive industry in Iowa

What is the automotive industry?

The automotive industry is one of the world’s most cost-effective sectors, since people have become very dependent on driving. The automotive industry deals with the design, development, manufacture, marketing and selling of motor vehicles.

Most Iowa companies that produce automotive parts are classified as Tier 2 or Tier 3 manufacturers. They sell their products to other businesses that use them to produce equipment that they, or yet another company, supply to automobile manufacturers. Many jobs in Iowa are an offshoot of the auto industry in Iowa these include: Automotive salespeople and anyone supporting sales, accountants, legal, repair technicians and dealer management are some of the persons who benefit from this industry.

Effects of the recession

Like every other industry the auto industry in Iowa took a terrible blow because of the recession. According to the Economic Policy Institute in a report published in 2008 the collapse of General Motors alone could cut 9400 jobs or 0.6% of employment in Iowa. It further stated that if the “Big Three” (General Motors, Ford and Chrysler) were to collapse Iowa could lose 33,900 jobs or 2.3 percent of the state's employment in a worst case scenario.

The Lemon Law

Due to these challenges, the service quality of a lot of these auto businesses have drop, with the customers having to feel the effects. The United States have implemented various laws to help keep the balance in the auto industry. One in particular is Lemon law in Iowa. This law provides protection to customers against faulty car purchase. It is a means to ensure that manufactures, dealerships etc. respond to consumer complaints in an ideal period of time. It is not limited however to the rights of the consumers. To qualify for the law, the problem or defect has to cause the vehicle to be unreliable, unfit, or unsafe for ordinary use.  Certain conditions must be in place for the law to be effective. These include; multiple visits to the auto shop with the same problem, or a single time if the problem is likely to cause death, or if the vehicle out of service for 20 days or more and the problem still exists. The law also requires the manufacture to inform the consumers of their rights and provide other necessary information such as address and phone number so the consumer can file a complaint if necessary. The defense of the manufacture is also included in the Iowa lemon law, where a claim can be made that the defect is not a result of actions by the dealer. The consumer also has the right to take the manufacturer to court if the dispute is not resolved.

With the recession slowly but surely coming to an end only time will tell the fate of the auto industry in Iowa.

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