US automotive technology company Gentex will build a manufacturing plant in Morocco to supply carmakers in Europe. The company wants to move production closer to its customers and reduce supply chain risks.
Gentex announced the project during its second-quarter 2026 earnings call. It has already signed a letter of intent, chosen a site and secured support from the Moroccan government. Production is expected to start in 2028.
The factory will make automatic-dimming rearview mirrors and advanced electronic vehicle modules for cars built and sold in Europe.
Chief Operating Officer Neil Boehm said: “Many of our international customers are focused on derisking their supply base by increasing the amount of localized production in each region where they operate.”
Several European carmakers now expect suppliers to have factories in the same region where vehicles are produced. The new plant will help Gentex meet those requirements while staying close to European assembly lines.
The company said the project will not significantly increase operating costs. The Morocco factory will focus on final assembly and module integration, while key technologies and specialised components will continue to come from Gentex’s main facilities in Zeeland, Michigan.
The plant will produce electrochromic mirrors that automatically darken to reduce glare from headlights behind a vehicle. The mirrors use light sensors and a microcontroller to detect glare and apply an electric current to a special gel between two layers of glass. The glass can reduce light reflectance from about 85% to less than 10% in a few seconds before becoming clear again.
The factory will also assemble advanced electronic modules, including Smart Rear Vision systems that replace the traditional mirror view with a high-definition camera display. Some modules also include HomeLink garage door controls, vehicle-to-infrastructure (V2I) communication technology and driver monitoring systems (DMS) that use infrared cameras to detect eye movement and signs of driver fatigue.
The investment comes as European carmakers increasingly move their supply chains closer to home through nearshoring. Shipping vehicle parts from Morocco to southern Europe usually takes one to two days through ferry routes linking Tanger Med with ports in Spain and France. The same journey from North America or East Asia can take several weeks.
Gentex is not building a fully integrated factory. Instead, the site will carry out final assembly while proprietary chemical materials and microchips continue to be produced in the United States.
The investment adds another major supplier to the country’s automotive industry, which already includes Renault plants in Tangier and Casablanca and a Stellantis factory in Kenitra. The project also expands local production into higher-value automotive electronics.
Founded in 1974, Gentex supplies digital vision systems, connected-car technologies, dimmable glass, fire protection products, medical devices and consumer electronics. The company is best known for its automatic-dimming rearview mirrors.
Gentex reported $651.3 million in net sales and $114.7 million in net income during the second quarter of 2026, giving it a profit margin of about 17.6%. Automotive revenue fell by around 3% from the previous quarter because of weaker vehicle production in Europe, Japan, South Korea and China.
