P&A Providers & Administrators
MenuMENU
SearchSEARCH

NHTSA Delays Final Rulemaking On Backup Cameras

February 26, 2011
3 min to read


The National Highway Safety Administration has postponed its final rulemaking on whether to require backup cameras on all vehicles by Sept. 2014.


The final ruling was expected to be released Feb. 28. NHTSA proposed the rule in December and gave the public two months to comment.

Ad Loading...


"The public comment period on this safety proposal only recently closed, and NHTSA will be asking Congress for additional time to analyze public comments, complete the rulemaking process and issue a final rule," the agency said in an emailed statement, reported Automotive News.


It did not say how long the delay would last.


NHTSA estimates about 18,000 people a year are hurt in back-over accidents, with about 3,000 suffering "incapacitating" injuries. The agency said 44 percent of the incidents involve children under age 5.


If enacted, the ruling could generate as much as $2.7 billion in revenue to suppliers of backup-camera components, the administration said in its initial report.


One such supplier is Gentex Corp., which provides rear- camera display mirrors to 59 vehicles sold by Ford, General Motors, Toyota and other automakers.

Ad Loading...


R.W. Baird analyst David Leiker has said the Zeeland, Mich., supplier has "nearly 100 percent" of the market for rear-camera display mirrors. He said in-mirror monitor displays could spread to lower-priced vehicles that don't have video displays already installed, because "the consumer prefers it in the mirror."


In response to the delayed ruling, Brett Hoselton, a senior automotive analyst with KeyBanc Capital Markets, issued a hold notice on Gentex stock. A hold indicates the stock is expected to remain steady for the next 6 to 12 months.


Following NHTSA's original proposal, Gentex stock jumped 17 percent to $26.89 on the Nasdaq Stock Market and it has continued to rise. The shares closed Friday at $30.65, up 23 cents from where they opened.


"The reason for the delay is the large number of comments (approximately 200) that made it not feasible to work through in the original timeline," Hoselton said in a statement.


He said he expects the rule to be tweaked to include testing for illumination at night and the time it takes the picture to appear on the display. Overall, though, he said there shouldn't be any major changes that would cause the ruling to be enacted later than September.

Ad Loading...


NHTSA did not specify the position of the camera display. Most current systems connect to either a console display, such as those used for navigation systems, or a small screen embedded in the rearview mirror, such as Gentex's products.


The agency says the cheapest option is to connect the camera to a vehicle's existing video screen at a cost of $58 to $88. Equipping a vehicle that doesn't already have a screen would cost $159 to $203, NHTSA said.


To meet the requirements of the proposed rule, NHTSA said, 10 percent of new vehicles must comply by Sept. 2012, 40 percent by Sept. 2013 and 100 percent by Sept. 2014.

More Industry

Photo of gray SUV plugged into public electric-vehicle charger in parking lot
Industryby Hannah MitchellJuly 21, 2026

World EV Adoption Set to Grow

A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.

Read More →
Bar chart of truck and SUV segments' weekly value change
Industryby StaffJuly 21, 2026

Black Book: Weekly Market Update

Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.

Read More →
laptop with blue car on screen on a shopping website, Clear Costs Convert
Industryby Lauren LawrenceJuly 21, 2026

Pricing Transparency Drives Purchase Consideration

An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.

Read More →
Ad Loading...
Bar graphic of used-car segment weekly change
Industryby StaffJuly 14, 2026

Black Book: Weekly Market Update

Used-vehicle market depreciation was the prevailing story in the wholesale market last week.

Read More →
Light-blue Fiat car parked on a sunny Chicago street
Industryby Hannah MitchellJuly 14, 2026

Smaller Is Looking Better

A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.

Read More →
man sitting at desk using calculator with charts in front of him, to-go coffee cup on desk, rising and falling data chart in front
Industryby Lauren LawrenceJuly 14, 2026

U.S. EV Market Slowly Stabilizes

U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.

Read More →
Ad Loading...
blue background, map of the world with connecting lights and an electric vehicle emblem in the middle
Industryby Lauren LawrenceJuly 8, 2026

Global EV Market Entering New Phase

Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.

Read More →
Bar chart showing week-over-week wholesale automotive price change
Industryby StaffJuly 7, 2026

Black Book Weekly Market Update

The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.

Read More →
Photo of Honda CR-V SUV on two-lane road next to roadside trees
Industryby Hannah MitchellJuly 1, 2026

Auto Affordability in Context

Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.

Read More →
Ad Loading...
Line chart of used-vehicle days to turn over past week
Industryby StaffJune 30, 2026

Black Book: Weekly Market Update

Automotive auction inventory increased last week, giving choosy bidders even more leeway.

Read More →