NEW YORK (AP) -- Shares of auto mirror supplier Gentex Corp. slid Wednesday after the federal government delayed rules that would have required rearview video cameras on many new cars and trucks for safety reasons.
THE SPARK: The Transportation Department says it needs some more time to research and analyze data before it can issue the regulations. The rules would have would necessitated rear-mounted video cameras with in-vehicle display screens in most cars, and would apply to all cars and light trucks by the 2014 model year.
The new rear visibility standard was required by a law that Congress passed in 2008 in response to dozens of accidents in which children were backed over.
The government's delay followed complaints from automakers that requiring the video camera systems would be too expensive.
THE BACKGROUND: Gentex makes RCD Mirrors, which have cameras displaying the area behind a car. Last month the Zeeland, Mich., company said that customers were delaying orders of the parts until government regulations are finalized.
Gentex shipped about 1.7 million of the mirrors in 2011.
SHARE ACTION: Gentex's stock declined $3.47, or 12.6 percent, to $24.17 in midday trading. Over the past year, the shares have traded in a range of $21.84 and $32.21.