All products and services
used in the repair and maintenance of vehicles.
Goods not for use as original
equipment in the production of light-duty vehicles or heavy-duty
vehicles, ie. products and services used in the repair and
maintenance of these vehicles.
Agent or broker
An intermediary with legal authority to
operate on behalf of the manufacturer.
American Automobile Labelling Act (AALA)
Regulations requiring vehicle manufacturers to include content information on
vehicle labels for cars and trucks for sale in the U.S.
after October 1, 1994.
Anti-lock braking system (ABS)
System that automatically
controls wheel slip or prevents sustained wheel-locking
Asia Pacific Economic Cooperation (APEC)
An organization established in 1989 to promote trade
and investment in the Pacific Basin. APEC now comprises eighteen countries located in and around the Pacific Ocean:
Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New
Guinea, the Philippines, Singapore, South Korea, Taiwan, Thailand, and the United States.
Association of South East Asian Nations (ASEAN)
An organization of states (including Brunei, Myanmar, Burma, Indonesia, Laos, Malaysia,
the Philippines, Singapore, Thailand, and Vietnam) founded in 1967 to present an united front that addresses
the political, economic, and strategic dynamics of the region.
Auto Pact base year
With respect to the Auto Pact, the
12 month period beginning on August 1, 1963, and ending on
July 31, 1964.
Auto Pact Canadian value added
The aggregate of the costs
of parts, material, labour costs, and transportation costs that are reasonably attributed
to the production of vehicles or parts by manufacturers producing vehicles in Canada.
Automated Guided Vehicle System (AGVS)
with automatic guidance equipment which follow a prescribed path,
stopping at each machining or assembly station for manual loading
and unloading of parts.
Autodealership or auto dealer
A retail outlet that carries
one (or in some cases in the U.S., a number of) manufacturer's
product line and sells to general consumers and fleet
operators. The outlet will also provide service and
sell parts for the brand of vehicle that it
carries. In some instances, a dealer may dual for
another manufacturer's product line.
Four-wheeled passenger motor vehicle having a
seating capacity for not more than 10 people including police cars
and racing cars but not including ambulances or hearses.
Auto parts store
Jobber and retail auto parts stores which
primarily sell automotive products and conduct business at the
Average weekly earnings
Gross taxable payrolls divided
by the number of employees.
General Motors, Ford and Chrysler.
Service outlet specializing in vehicle body
Passenger motor vehicle or chassis having a seating
capacity for more than 10 people.
The act of determining whether or not a
product purchase or repair, will be made, and/or which product or
service will be purchased.
Canada-U.S. Free Trade Agreement (FTA)
Implemented in January 1989
to eliminate all tariffs on U.S. and Canadian goods by January 1998 and to reduce or eliminate many non-tariff barriers.
Canadian Automotive Repair and Service Council (CARS)
A not-for-profit organization
established to serve the human resource and training needs of the Canadian car and truck repair and service industry.
Canadian cross border shopping
Cross border shopping
describes the purchasing by Canadian consumers of products in
the United States. Of particular interest is the decision by
these buyers to obtain their products in the U.S., even
though similar products are available in the Canadian market.
Canadian Environmental Protection Act (CEPA)
Act where the goal is pollution prevention and
protection of Canadians from toxic substances.
Maximum production attainable under
conditions. With regard to conditions, the company's
operating practices are to be followed with respect to the use of
production facilities, overtime, work shifts, holidays, etc.
Expenditures to acquire or add to
capital assets that will yield benefits over several accounting
periods. Included are cost of procuring, construction,
installing new durable plants, machinery and equipment where
for replacement, addition or for lease or rent to other
companies including subsidies.
An imported motor vehicle or part
manufactured by another automaker usually for sale under the
brand name of the importer.
A process technology that delivers a liquid
molten metal into a purpose-built mould. After cooling, the
solid metal surface has the shape of the mould cavity.
Census value added
Residual representing the difference
between the value of goods and industrial services produced and
the direct material costs associated with the production of
The refitting of equipment to either neutralize
the effects of the just completed production or to prepare
equipment for production of the next scheduled item, or both.
The international concern that increasing concentrations of greenhouse gases (GHGs)
in the atmosphere are changing the climate in ways detrimental to our social and economic well-being.
A raw material, ingredient, part or subassembly
that goes into a higher level assembly, compound, or other item.
A combination of two or more parts or
sub-components to form an assembly.
The activity for the design of specific components including responsibility for
material, cost, weight, reliability, durability, function, appearance, serviceability.
A current production vehicle modified for installation of new design concepts for
evaluation of environmental functional feasibility.
Demographic characteristics of consumers
including age, gender, income and geographic location,
Corporate Average Fuel Economy (CAFE)
in 1975 which requires a motor vehicle manufacturer to classify
its U.S. vehicle fleet sales as either domestic or import for
the purpose of fuel economy averaging.
Cost of production
Actual cost to the manufacturer of
producing a vehicle (does not include mark-up).
Customs duties levied on imported goods under
the Customs Tariff.
Number of days needed to sell all vehicles in
inventory, based on the previous month's sales rate.
A firm that buys and sells, adding some value for the
consumer in the process. Dealer often means a firm which
operates closer in the distribution channel to the consumer than
a distributor or wholesaler, and may add more value for consumers
than either of the above-mentioned terms.
The individual or corporation that owns
and controls one or a number of auto dealerships.
Solid or hollow form used for shaping materials by
stamping, pressing, extruding, drawing or threading.
The way in which innovations spread through
market or non-market channels.
Synonymous with wholesalers; distributors
perform many of the same functions as wholesalers, such as selling,
physical distribution, credit, etc. Some industries use the
term distributor instead of wholesaler.
Is the path goods take as their title
transfers from producer to consumer. The title transfer for
consumer goods is usually accompanied by transfer of the physical
goods, as well.
Do-it-Yourself Market (DIY)
The vehicle maintenance and
repairs conducted by the vehicle owner or friend/relative who
purchase auto parts from a retail outlet.
A vehicle produced in Canada, United States or Mexico.
The hourly rates charged by dealers on
standardized units of service work. Hourly rates may or may
not correspond to an actual hour of work.
Import duties or taxes repaid by a government
in whole or in part, when the imported goods are re-exported or
used in the manufacture of exported goods.
Duty paid value
In respect to imported goods, is the
aggregate value for duty on imported goods.
Forgiveness, in whole or in part, of import
duties when certain conditions are met.
Cars, buses, vans or trucks which use
dedicated or hybrid electric systems as their power source.
Total employment in each manufacturing facility,
including total manufacturing employees, total support staff, and
total engineering/R&D staff.
Average number of workers employed by an establishment during the
year. Production workers relate to the average number actually
engaged in the manufacturing process. Administrative and
non-manufacturing includes employees at head offices and sales
The provision of direct (salary,
bonuses, etc.) indirect (vacation leave, medical and
dental plans, etc.) and deferred employee compensation
Smallest operating entity producing a
homogenous set of goods and services and is capable of reporting
full range of production account variables to calculate
Free Trade Agreement of the Americas (FTAA)
An effort to unite the economies of the Western Hemisphere
into a single free trade arrangement. The Heads of State of the 34 democracies in the region agreed to construct a "Free Trade Area of the Americas" and
to complete negotiations for the agreement by 2005.
Finance & control
Ownership of company
(ie. Canadian, U.S., Japanese, German, etc.);
public or private; capital investments: buildings, machinery
and equipment, tooling programs.
A business or institution comprising sole
proprietorships, partnerships, companies and other forms
Fixed or One Price Selling
published fixed price displayed on a new vehicle eliminating need for negotiation.
Device for holding goods in process while working
tools are in operation that does not contain any special
arrangements for guiding the working tools.
The purchase of vehicles by a business that
meet a minimum requirement of units sold.
Prediction of future production or sales in the
A process that transforms solid metal into shapes
of varying cross-sectional material thickness, often involving
Establishment that has the right to exercise the
powers of a corporation.
G7 (Group of Seven)
Seven industrial countries consisting of
the United States, Japan, Germany, France, the United Kingdom, Italy and Canada, whose leaders have
met at annual economic summits since 1975 to coordinate economic policies.
General Agreement on Tariffs and Trade (GATT)
Signed in 1947, the GATT was a
formal multilateral agreement aimed at expanding and liberalizing world trade. The World Trade
Organization which is the successor to the GATT came into existence on January 1, 1995.
Generalized Preferential Tariff (GPT)
System of non-reciprocal
tariff preferences for the benefit of developing countries.
It grants duty-free or preferential entry to imports for eligible
developing countries up to a certain dollar value or import
Greenhouse gases (GHGs)
Group of gases which individually act to trap solar energy near the earth. GHGs for which emission
levels have been estimated are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O),
sulphur hexafluoride (SF6), carbon tetrafluoride (CF4), carbon
hexafluoride (C2F6) and hydrofluorocarbons (HFCs).
The grey market describes the purchase by
intermediaries of product which is not supplied to them by the
"authorized" distribution channel of the supplier. Thus, a
warehouse club in Canada that sells a stereo bought in the
U.S. or elsewhere from other than the manufacturer is
supplying grey market goods. While grey market products
are frequently the same as would be available from conventional
channels in Canada, the grey market assumes responsibility for
service or repair where the manufacturer declines this support.
Gross Vehicle Weight (GVW)
Maximum legal weight at which a vehicle can be operated.
Vehicle weighing from 26,001 to 33,001
lbs. Also included off-highway trucks.
Electrical system devised to produce
timed sparks from engine spark plugs. Consisting of a
battery, induction coil, capacitor, distributor, spark plugs and
relevant switches and wiring.
An organization that typically operates at arms
length or under contractual agreement with manufacturers to bring
products made in another country into Canada.
Vehicles sold by manufacturers primarily
located outside North America whether assembled Overseas or in
Independent Repair Shop
Small service outlet offering
specialized repair services. They usually do not sell
Intellectual Property Rights (IPR)
The right to possess or control the use of
intellectual property, such as trademarks, copyrights, patents and trade secrets.
Rivalry between different
channels of the distribution system. For example, independent
retailers competing with manufacturers' outlets.
Firm or organization that operates between
the producer of the goods and the end purchaser. Thus, the
members of the distribution channel noted above are intermediaries
Rivalry between channel
participants at the same level in the distribution channel.
For example, department stores competing with one another.
Book value of inventory owned and held in
Device used in the accurate machining of good in
process by holding the goods firmly and guiding tools exactly to
An international business collaboration between foreign interests and private parties
from a host country in which two or more parties establish a new business enterprise to which each contributes and
where ownership and control are shared.
Refers to the movement of material to
the necessary place at the necessary time. It is part of a
business philosophy based on achieving excellence in a
manufacturing company through the continuous elimination
Activity through which continuous improvement is sought.
International agreement among industrialized countries to reduce greenhouse gas emissions negotiated in
Kyoto, Japan in December 1997. Canada committed to reduce its greenhouse gas emissions by 6 percent of 1990 levels between 2008 and 2012.
Form of contract transferring the use of a vehicle
in consideration of payment.
Vehicle weighing less than 14,000 lbs.
Passenger cars and light trucks.
Products whose prices are cut with the idea that they will attract customers to the
Brand name of a car or truck (ie. Chevrolet, Ford, Dodge, Honda).
Manufacturer's Suggested Retail Price (MSRP)
Dealers typically sell at a discount to this price.
An operation which shapes metal parts by carving
away excess material as chips produced in a sequential process of
turning, milling and grinding operations.
Process technology (i.e. metal forming,
machining, injection moulding, blow moulding, die casting,
forgings, electronics/electrical, assembly, coating/plating);
capacity utilization (in percent); production volumes; strategic
alliances (eg. joint ventures, technology agreements).
Margin or gross margin
The return an intermediary achieves
on the selling price of the article. That is, if the
intermediary buys a product for $1 and sells it for $1.50,
the margin is calculated. For example, .50 divided by
$1.50, or 33%.
The percentage of total sales represented by an individual manufacturer/importer,
make or nameplate.
The return an intermediary achieves on
the cost price of an article. Using the same example
described above, mark-up is .50 divided by $1, or 50%.
Mexican assembly plant located near the U.S.-Mexican border where most
production is exported to the United States.
Mechanic installed market (MIL)
Vehicle maintenance and
repair conducted by a mechanic/professional at a service outlet.
Vehicle weighing from 14,001 to
The southern cone common market of Argentina, Brazil, Paraguay, and Uruguay. Mercosur
enacted a common external tariff on January 1, 1995 for almost 85 percent of tariff items of the four countries; most trade
among members will be duty-free.
Solid metal and molten metal process such
as casting, forging, stamping and machining.
MMT is an organic manganese compound. It is used as a fuel additive designed to enhance octane levels in gasoline.
Group of motor vehicles having the same platform
or model name.
Word, group of words, letter, number or similar
designation assigned to a motor vehicle by a marketing division
of a motor vehicle assembler.
Most-Favoured-Nation (MFN) Treatment
One country's commitment to extend to another country the lowest tariff rates
that it applies to any third country.
Motor Vehicle Saftey Act (MVSA)
Act which regulates the manufacture and importation of motor vehicles
and motor vehicle equipment to reduce risk of death, injury and damage to property and the environment.
Hollow form, matrix or cavity into which materials
are placed to produce goods of desired shapes.
Net sales value
The selling price received by the
manufacturer for the vehicle including the cost of transporting
the vehicle in Canada (includes mark-up).
New car dealer
Major car dealership with a parts and
North American Free Trade Agreement (NAFTA)
Agreement creating free trade among the United States,
Canada, and Mexico. The NAFTA went into effect on January 1, 1994.
North American Industrial Classification System (NAICS)
Industry Classification between Canada, the United States and Mexico to increase compatibility of data with these countries. The classification is based on establishment rather than commodity. This classification system will be implemented with reference to year 1997 and data will be available in 1999.
North American produced
Motor vehicles assembled in
Canada, the United States or Mexico.
Vehicle intended for operation on
unmade surfaces or rough terrain (i.e. for construction
On Board Diagnostics (OBD)
A unit that monitors the Electric Control Unit and system responses for errors during vehicle operations.
When the vehicle is serviced, this information on the errors can be down loaded and displayed to the service personnel which will facilitate the trouble
Pre-tax earnings after deducting all
operating expenses from gross margin.
Organization for Economic Co-operation and Development (OECD)
An organization whose purpose is to provide its 29 Member
countries with a forum in which governments can compare their experiences, discuss the problems they share and seek solutions which can then be
applied within their own national contexts. Each member country is committed to the principles of the market economy and pluralistic democracy.
Synonymous with vehicle dealership.
The situation where maximum global production of automobiles exceeds the total global demand for automobiles.
Includes pay received for the number of hours
worked in excess of the standard workday or workweek.
Partnership for a New Generation of Vehicles (PNGV)
Established in 1993, this partnership, between the United
States Federal Government and the Automotive industry, was founded to establish global technical leadership in the development and production of affordable, fuel-efficient, low emission vehicles that meet today's performance standards.
Four wheeled motor vehicle that also
includes mini-vans and sport utility vehicles.
A process that converts organic-based
materials, by means of a general-purpose press and purpose-built
tooling under controlled heat and pressure, and injects the hot
material into a die cavity shaped in the final form of the
Primary load-bearing structural assembly of a
motor vehicle determining the basic size of the motor vehicle,
and is the structural base that supports the drive line and
links the suspension components of the motor vehicle.
Flexible, hollow rubber forming the
outer part of the vehicle wheel and inflated by air pressure.
The process of planning the product's
A function whereby an enterprise is
responsible for the efficient, planning, scheduling and
coordination of production activities.
Rigorous methods whereby a product's
quality and durability are measured.
Planning and control of the
mechanical means of changing the shape, condition of materials
toward greater effectiveness and value.
Relative measure of output per labour and/or
Automobiles sold by manufacturers for fleet
use. Usually applies to very large fleets, such as those of
car rental companies.
A consensus of what has been determined to be the most marketable
product for a given model year.
Total materials purchased for
manufacturing/assembly into auto parts (ie. steel, plastics, rubber, textiles, etc.).
quick die change.
Conformance to requirements in relation to a degree
Closure of a plant for the purpose of plant
conversion or retooling.
Motor vehicle ownership that is filed with the province/state.
Research & development
R&D expenditures (product and process development).
Society of Automotive Engineers.
Total automotive product sales (vehicles, automotive, parts, including OE and aftermarket).
Scientific Research and Experimental Development (SR&ED) Program
This program provides generous incentives for industrial
research and development in Canada. The program allows individuals and companies to deduct 100 percent of qualified current SR and ED expenditures
and capital SR and ED expenditures.
A vehicle registered in the previous year but not re-registered in the current year.
Outlets which sell gasoline and are operated by the major oil companies.
Shipments (value of)
Summation of value of shipments produced by establishment, receipts of custom and repair revenue.
Special Import Measures Act (SIMA)
Helps to protect Canadian producers from harm or injury caused by the dumping of goods into Canada
by foreign exporters or the subsidizing of goods by foreign governments.
A category that describes plants which add value to automotive parts manufactured by others by using
process such as painting, plating, heat treatment, etc.
Specialty repair shop
Retail outlet which offers
specialized vehicle products and service.
Sports Utility Vehicle.
A process technology which manufactures automotive parts by shaping rolled sheet metal or by bending or
stretching it in a sequence of purpose-built tools fitted to a general purpose press.
Standard Industrial Classification (SIC)
Industry class that represents a level of organization of production by type of specialization. Currently the 1980 Standard Industrial Classification is in effect identifying each industry at the 4 digit level.
Standard Work Week
average number of hours work scheduled in a work week.
A subsidiary is an organization operating in
Canada that is owned or controlled by a foreign company which may
or may not manufacture in Canada.
Supplier Cost Reduction Effort (SCORE)
A United States program that urges suppliers to develop processes to cut costs.
Suppliers are allowed to keep half the savings and pass on the other half to the automakers.
A duty or tax imposed on imports.
Tier 1 Supplier
Manufacturer to the vehicle assemblers who are responsible for delivery of the finished assembly, product
development and continued technology renewal.
Tier 2 Supplier
Producer of parts providing value-added to
Tier 3 Supplier
Supplier of engineered materials and special services, such as rolls of sheet steel, bars and heat
treating, surface treatments.
Retail outlet selling tires and offering vehicle repair services.
Total Quality Management (TQM)
A management technique to improve the quality of goods and services, reduce operating
costs and increase customer satisfaction.
Device for use in, or attachment to, production machinery that is for the assembling of materials or the working
of materials by turning, milling, grinding, polishing, drilling, punching, boring, shaping, shearing, pressing or planing.
Set of required standard or special tools needed
to produce a particular part; includes jigs, fixtures, gages and
cutting tools, but excluding machined tools.
Vehicle designation assigned by vehicle manufacturers that represent specific equipment packages.
United States Council for Automotive Research (USCAR)
An organization founded by Chrysler,
Ford, and General Motors to strengthen the technology base of the domestic automotive industry through research and co-operation.
Vehicle that has been previously owned or driven.
Voluntary export restraint in relation to Japanese
manufacturers exporting to Canada (no longer in effect).
Voluntary restraint agreement in relation to Japanese
manufacturers exporting to the United States (no longer
Vehicle Identification Umber (VIN)
Number assigned to a vehicle by the manufacturer primarily for registration and identification purposes (consisting of numerals and letters).
Chrysler Canada, in partnership with government and educational institutions, has launched
a number of initiatives collectively referred to as the Windsor Experiment. The Windsor Experiment conducts studies to benchmark "best practice" training
and education in Europe, and applied the results in various skills development programs.
An intermediary which sells to other intermediaries, such as a firm that buys from a manufacturer
and sells to a retailer.
World Trade Organization (WTO)
Created by the Uruguay Round and successor to the
GATT, this new organization began operations on January 1, 1995.