Gentex (Nasdaq:GNTX) Shares Move Up on Rear-Mounted Camera Mandate

Gentex (Nasdaq:GNTX) has found support from the possibility rear-mounted camera systems may be required to be mounted on cars built in the U.S.

Canaccord said, "Auto-parts maker Gentex revved on news the U.S. may mandate rear-mounted camera systems in all new vehicles by 2014. In safety regulations proposed Friday, the U.S. Department of Transportation said that rear-mounted cameras, with a video display inside the vehicle, are the best system to show the blind spot behind vehicles. The proposed rule would require 10% of new vehicles to be equipped with such systems by September 2012, 40% by September 2013 and all new vehicles by September 2014. An average of 292 people die from back-over accidents every year, many of them young children who cannot be seen by the driver. “There is no more tragic accident than for a parent or caregiver to back out of a garage or driveway and kill or injure an undetected child playing behind the vehicle," said Transportation Secretary Ray LaHood. "The changes we are proposing today will help drivers see into those blind zones directly behind vehicles to make sure it is safe to back up." Gentex has been expanding production of its rear camera system for the last few years, betting on the government's push for better back-up vision that started some time ago. Motley Fool notes that if the rule goes through it would be a big boon for Gentex, but with an estimated industry cost of $2.7 billion, it is likely to meet heavy opposition from lobbyists and other industry insiders."

Gentex closed at $27.39 on Monday, up by $0.50, or 1.86 percent.