Gentex (GNTX) Shares Move Higher as New NHTSA Rule Could Add Upside
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Shares of Gentex Corp. (Nasdaq: GNTX) are up sharply Tuesday following some recent developments which may be bullish for the stock over the next couple of years.
According to the NY Times this morning, the National Highway Traffic Safety Administration (NHTSA) may require all new vehicles to have rear view cameras by 2014. The news comes on the heels of a report from KidsAndCars.org which shows, on average, 50 children are injured and two die every week when a vehicle accidentally backs over them. Whats more, 66 percent of the time its a parent or relative which is operating the vehicle, making the statistics even more tragic.
Gentex makes rear view cameras for cars, among other automotive-related items.
The move might be one of the federal government's biggest steps in protecting pedestrians from vehicles. The 1980s saw the addition of the "Liddy Light," the third tail light mandated by Elizabeth Dole, Secretary of Transportation in the '80s. Another mandated safety device was the air bag.
Adding the camera to vehicles may cost the auto industry $2.7 billion per year, or $160 to $200 per vehicle, according to the Times.
Costs can't outweigh piece of mind. Regulators have said 95 to 112 death per year are tied to the wide blind spot at the rear of the vehicle. About 8,374 injuries occur each year from the same premise.
Though pulling back a little, Gentex shares are up about 6 percent on the session.
According to the NY Times this morning, the National Highway Traffic Safety Administration (NHTSA) may require all new vehicles to have rear view cameras by 2014. The news comes on the heels of a report from KidsAndCars.org which shows, on average, 50 children are injured and two die every week when a vehicle accidentally backs over them. Whats more, 66 percent of the time its a parent or relative which is operating the vehicle, making the statistics even more tragic.
Gentex makes rear view cameras for cars, among other automotive-related items.
The move might be one of the federal government's biggest steps in protecting pedestrians from vehicles. The 1980s saw the addition of the "Liddy Light," the third tail light mandated by Elizabeth Dole, Secretary of Transportation in the '80s. Another mandated safety device was the air bag.
Adding the camera to vehicles may cost the auto industry $2.7 billion per year, or $160 to $200 per vehicle, according to the Times.
Costs can't outweigh piece of mind. Regulators have said 95 to 112 death per year are tied to the wide blind spot at the rear of the vehicle. About 8,374 injuries occur each year from the same premise.
Though pulling back a little, Gentex shares are up about 6 percent on the session.
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