dynaCERT, Mercedes-Benz and Volkswagen: Three strategies for the mobility transition

dynaCERT is expanding globally with its HydraGEN™ technology

All over the world, engineers in automotive companies are working on energy-efficient drive solutions for vehicles and trucks. However, electric mobility is not taking off in some countries, largely due to a lack of infrastructure, such as in Germany. However, the Canadian company dynaCERT, with German management reinforcement, seems to be hitting the mark with its bridging technology.

dynaCERT offers a switchable hydrogen system called HydraGEN™ that is specially designed for diesel engines. The system can be added to existing diesel engines and can be switched on as needed. The HydraGEN™ kit significantly reduces fuel consumption by injecting hydrogen and oxygen into the diesel engine's air intake. At the same time, the efficiency of the engine is increased. Tests so far have shown that the dynaCERT technology can reduce the CO₂ emissions of converted diesel engines by around 86%.

The advantage is clear: existing infrastructures can continue to be used, and the HydraGEN™ technology can be used to reduce CO₂ without costly fleet changes, the cost intensity of which could upset the balance sheet of some logistics companies, for example.

In addition to logistics, the HydraGEN™ technology is also used in the mining industry, shipping, construction, and agriculture. The wide range of possibilities makes it particularly interesting for investors with a long-term orientation. In Australia, dynaCERT has already delivered several units to mining customers. After a successful pilot phase in Brazil and Peru, further systems have been ordered. The Company is pleased about the increasing demand, especially from the oil, gas and mining industries. Orders are currently coming in from Western Canada, Texas and Mexico.

Mercedes-Benz buses consolidate market leadership in Mexico

German companies are strongly orienting themselves towards their international locations in order to continue business. While more and more jobs are being cut in their own country, particularly in the automotive industry, due to horrendous economic policy, Latin America, with a focus on Mexico, seems particularly lucrative: the bus division of Mercedes-Benz is having a record year there. With more than 4,100 units sold by the end of 2024, the Company has achieved a market share of around 45% there. From January to November 2024 alone, 3,771 buses were delivered, highlighting the Company's leading position in the Mexican market. Mexico is home to around 137.2 million people. More than 40 million citizens in Mexico use Mercedes-Benz buses for their daily travel.

The Company's Mexican financing business has also developed successfully. Daimler Truck Financial Services was able to finance more than 2,300 units in 2024 – a growth of 55% over the previous year. This corresponds to a financing volume of over 5 billion pesos (approx. EUR 236.5 million), with three out of five Mercedes-Benz buses sold being financed by the Company's own financing company.

This positive development is the result of a five-year strategy that took into account important changes in the market, particularly during the pandemic. This is confirmed by Raul Gonzalez, Director of Bus Sales, Marketing and After Sales at Mercedes-Benz. The bus sector is increasingly moving away from individual bus operators and towards professional transport companies that value the comprehensive service and maintenance offered by Mercedes-Benz through the nationwide dealer network.

Europe's auto industry in crisis: Declining registrations and major restructuring at Volkswagen

The European automotive market continues to falter. According to ACEA, new registrations in the EU fell by 1.9% to 869,816 vehicles in November 2024. The decline is particularly pronounced in France, down 12.7%, and Italy, down 10.8%. The important future market for electric vehicles is also showing weaknesses: Sales of pure electric vehicles have fallen by 9.5% to 130,757 units, with Germany and France particularly affected, each with a decline of over 20%.

Volkswagen is feeling the pressure in a particularly significant way. Over the next five years, the automaker will reduce its production capacity in Germany by 700,000 vehicles. In addition to the latest mishap – a data leak of around 80,000 vehicles, which passed on their location to unauthorised parties – the Company is cutting 35,000 jobs. Of the current 130,000 jobs, 95,000 will remain.

Volkswagen emphasises that the job cuts should be carried out in a socially acceptable manner. Management will also have to accept cuts: around 4,000 managers will have to accept a 10% pay cut in 2025 and 2026, which will mainly be achieved by reducing bonuses. A slight mockery of the 35,000 jobs that will be lost.

Europe's automakers also warn of the threat of billions in fines due to tighter CO₂ limits from 2025. The president of the European Automobile Manufacturers' Association (ACEA) and CEO of Renault, Luca de Meo, is calling on the EU Commission to make clear political statements in support of the industry before the end of this year. Without such clarity, the automotive industry risks up to EUR 16 billion in investment capacity – whether through fines, production cuts, cooperation with foreign competitors or the loss-making sale of electric vehicles.

dynaCERT is transforming existing diesel fleets with its HydraGEN™ technology. Whether in logistics, shipping or mining, the patented retrofit solution enables a significant reduction in CO₂ without the need for a complete fleet replacement. This saves costs and increases engine efficiency. It is particularly popular in countries like Mexico. The Company's global expansion and growing order book point to a promising business model that investors should take a closer look at. Mercedes-Benz can enjoy market leadership in Mexico thanks to its bus business there, with a share of 45%. With sales in the four-digit range this year, the Stuttgart-based company dominates the local bus market. In addition, the financing business and strategic adaptation to market changes ensure further growth, while in Europe, business is weakening due to strict environmental regulations. It is precisely under this environmental pressure that Volkswagen is cutting 35,000 jobs in Germany out of a total of 130,000. The reduction of production by 700,000 vehicles and current technical problems, such as the data leak of 80,000 vehicles, which provides everyone with the vehicle's current location, paint a somewhat hopeless picture. The 10% pay cut for management is also seen as a symbolic act. An end to the downward transformation is not yet in sight for the Wolfsburg-based company.