- Capacity
-
maximum production attainable under
normal conditions. With regard to normal conditions, the
company's operating practices are to be followed with respect to
the use of production facilities, overtime, workshifts,
holidays, etc.
-
- Capital Expenditures
-
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.
-
- Captive Import
-
an imported motor vehicle or part
manufactured by another automaker usually for sale under the
brand name of the importer.
-
- Casting
-
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 goods.
-
- Changeover
-
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.
-
- Climate Change
-
the international concern that
increasing concentrations of greenhouse gases (GHGs) in the
atmosphere are changing the climate in ways deterimental to our
social and economic well-being.
-
- Component
-
a raw material, ingredient, part or
subassembly that goes into a higher level assembly, compound, or
other item.
-
- Component assembly
-
a combination of two or more parts
or sub-components to form an assembly.
-
- Component Design
-
the activity for the fesign of
specific components including responsibility for material, cost,
weight, reliability, durability, fuction, appearance,
serviceability.
-
- Concept Vehicle
-
a current production vehicle
modified for installation of new design concepts for evaluation
of environmental functional feasibility.
-
- Consumer factors
-
demographic characteristics of
consumers including age, gender, income and geographic location,
affordability.
-
- Corporate Average Fuel Economy
(CAFE)
-
regulation enacted 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
-
customs duties levied on imported
goods under the Customs Tariff.
-
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- Days' Supply
-
number of days needed to sell all
vehicles in inventory, based on the previous month's sales rate.
-
- Dealer
-
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.
-
- Dealer principal
-
the individual or corporation that
owns and controls one or a number of auto dealerships.
-
- Die
-
solid or hollow form used for
shaping materials by stamping, pressing, extruding, drawing or
threading.
-
- Diffusion
-
the way in which innovations spread
through market or non-market channels.
-
- Distributor
-
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.
-
- Distribution channel
-
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.
-
- Domestic
-
a vehicle produced in Canada,
United States or Mexico.
-
- Door rates
-
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.
-
- Duty drawback
-
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.
-
- Duty waiver
-
forgiveness, in whole or in part,
of import duties when certain conditions are met.
-
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- Electric Vehicle
-
cars, buses, vans or trucks which
use dedicated or hybrid electric systems as their power source.
- Employment
-
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 offices.
-
- Employee Benefits
-
the provision of direct (salary,
bonuses, etc.) indirect (vacation leave, medical and dental
plans, etc.) and deferred employee compensation (pensions,
etc.).
-
- Establishment
-
smallest operating entity producing
a homogenous set of goods and services and is capable of
reporting full range of production account variables to
calculate "valueadded".
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- 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.
- Firm
-
a business or institution
comprising sole proprietorships, partnerships, companies and
other forms of organizations.
-
- Fixed or One Price Selling
-
published fixed price displayed on
a new vehicle eliminating need for negotiation.
-
- Fixture
-
device for holding goods in process
while working tools are in operation that does not contain any
special arrangements for guiding the working tools.
-
- Fleet sales
-
the purchase of vehicles by a
business that meet a minimum requirement of units sold.
-
- Forecast
-
prediction of future production or
sales in the automotive industry.
-
- Forging
-
a process that transforms solid
metal into shapes of varying cross-sectional material thickness,
often involving heating.
-
- Franchise
-
establishment that has the right to
exercise the powers of a corporation.
-
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- 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
prferences for the benefit of developing countries. It grants
duty-free or preferential entry to imports for elegible
developing countries up to a certain dollar value or import
percentage limit.
-
- 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).
-
- Grey market
-
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.
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- Heavy-duty truck
-
vehicle weighing from 26,001 to
33,001 lbs. Also included off-highway trucks.
-
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- Ignition System
-
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.
-
- Importer
-
an organization that typically
operates at arms length or under contractual agreement with
manufacturers to bring products made in another country into
Canada.
-
- Import Nameplate
-
vehicles sold by manufacturers
primarily located outside North America whether assembled
Overseas or in North America.
-
- Independent Repair Shop
-
small service outlet offering
specialized repair services. They usually do not sell gasoline.
-
- Intellectual Property Rights (IPR)
-
the right to possess or control the
use of intellectual property, such as trademarks, copyrights,
patents and trade secrets.
- Interchannel competition
-
rivalry between different channels
of the distribution system. For example, independent retailers
competing with manufacturers' outlets.
-
- Intermediary
-
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 or "middlemen".
-
- Intrachannel competition
-
rivalry between channel
participants at the same level in the distribution channel. For
example, department stores competing with one another.
-
- Inventories
-
book value of inventory owned and
held in Canada.
-
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- Jigs
-
device used in the accurate
machining of good in process by holding the goods firmly and
guiding tools exactly to position.
-
- Joint Venture
-
an international business
collaboration between foreigh 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.
- Just-in-Time (JIT)
-
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 of
waste.
-
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- Kaizen Activities
-
activity through which continuous
improvement is sought.
-
- Kyoto Protocol
-
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.
-
Top of Page
- Lease
-
form of contract transferring the
use of a vehicle in consideration of payment.
-
- Light truck
-
vehicle weighing less than 14,000
lbs.
-
- Light vehicles
-
passenger cars and light trucks.
-
- Loss Leaders
-
Products whose prices are cut with
the idea that they will attract customers to the store.
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- Make
-
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.
-
- Machining
-
an operation which shapes metal
parts by carving away excess material as chips produced in a
sequential process of turning, milling and grinding operations.
-
- Manufacturing
-
process technology (ie. 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%.
-
- Market share
-
The percentage of total sales
represented by an individual manufacturer/importer, make or
nameplate.
-
- Mark-up
-
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%.
-
- Maquila (maquiladora)
-
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.
-
- Medium-duty truck
-
vehicle weighing from 14,001 to
26,000 lbs.
-
- Mercosur
-
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.
-
- Metal forming
-
solid metal and molten metal
process such as casting, forging, stamping and machining.
-
- Methylcyclopentadienyl Manganese
Tricarbonyl (MML)
-
MMT is an organic manganese
compound. It is used as a fuel additive designed to enhance
octane levels in gasoline.
-
- Model line
-
group of motor vehicles having the
same platform or model name.
-
- 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 ocuntry 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 vehile equipment to
reduce risk of death, injury and damage to property and the
environment.
-
- Mould
-
hollow form, matrix or cavity into
which materials are placed to produce goods of desired shapes.
Top of Page
- 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 service operation.
-
- North American Free Trade
Agreement (NAFTA)
-
Agreement creating free trade amone
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.
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- Off-Highway Vehicle
-
Vehicle intended for operation on
unmade surfaces or rough terrain (i.e. for construction or
agriculture).
-
- On Board Diagnostics (OBD)
-
a unit that monitors the Electric
Control Unit and system responses for errors during normal
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 shooting
process.
-
- Operating profit
-
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.
-
- Outlet
-
synonymous with vehicle dealership.
-
- Overcapacity
-
the situation where maximum global
prodution of automobiles exceeds the total global demand for
automobiles.
-
- Overtime
-
includes pay received for the
number of hours worked in excess of the standard workday or
workweek.
Top of Page
- 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.
-
- Passenger vehicle
-
four wheeled motor vehicle that
also includes mini-vans and sport utility vehicles.
-
- Plastic moulding
-
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 intended part.
-
- Platform
-
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
driveline and links the suspension components of the motor
vehicle.
-
- Pneumatic Tire
-
Flexible, hollow rubber forming the
outer part of the vehicle wheel and inflated by air pressure.
-
- Product design
-
the process of planning the
product's specifications.
-
- Product planning
-
a function whereby an enterprise is
responsible for the efficient, planning, scheduling and
coordination of production activities.
-
- Product testing
-
rigorous methods whereby a
product's quality and durability are measured.
-
- Production engineering
-
planning and control of the
mechanical means of changing the shape, condition of materials
toward greater effectiveness and value.
-
- Productivity
-
relative measure of output per
labour and/or machine output.
-
- Program cars
-
automobiles sold by manufacturers
for fleet use. Usually applies to very large fleets, such as
those of car rental companies.
-
- Program Objectives
-
A consensus of what has been
determined to be the most marketable product for a given model
year.
-
- Purchasing
-
total materials purchased for
manufacturing/assembly into auto parts (ie. steel, plastics,
rubber, textiles, etc.).
Top of Page
- QDC
-
quick die change.
-
- Quality
-
conformance to requirements in
relation to a degree of excellence.
Top of Page
- Refit
-
closure of a plant for the purpose
of plant conversion or retooling.
-
- Registration
-
motor vehicle ownership that is
filed with the province/state.
-
- Research & development
-
R&D expenditures (product and
process development).
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- SAE
-
Society of Automotive Engineers.
-
- Sales
-
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.
-
- Scrappage
-
a vehicle registered in the
previous year but not re-registered in the current year.
-
- Service station
-
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.
-
- Special services
-
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.
-
- SUV
-
Sports Utility Vehicle.
-
- Stamping
-
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 worked
normally scheduled in a work week.
-
- Subsidiary
-
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.
Top of Page
- Tariff
-
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 minor sub-assembly.
-
- Tier 3 Supplier
-
supplier of engineered materials
and special services, such as rolls of sheet steel, bars and
heat treating, surface treatments.
-
- Tire store
-
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.
-
- Tool
-
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.
-
- Tooling
-
set of required standard or special
tools needed to produce a particular part; includes jigs,
fixtures, gages and cutting tools, but excluding machined tools.
-
- Trim Level
-
vehicle designation assigned by
vehicle manufacturers that represent specific equipment
packages.
Top of Page
- 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.
-
- Used vehicle
-
vehicle that has been previously
owned or driven.
Top of Page
- VA
-
Value analysis.
-
- VE
-
Value engineering.
-
- VER
-
Voluntary export restraint in
relation to Japanese manufacturers exporting to Canada (no
longer in effect).
-
- VRA
-
Voluntary restraint agreement in
relation to Japanese manufacturers exporting to the United
States (no longer in effect).
-
- Vehicle Identification Umber (VIN)
-
Number assigned to a vehicle by the
manufacturer primarily for registration and identification
purposes (consisting of numerals and letters).
Top of Page
- Windsor Experiment
-
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.
-
- Wholesaler
-
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.
-
- Source : Canadian Automotive Industry
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