The Automotive Industry Is Under Pressure: Why dynaCERT Could Be the Missing Piece of the Puzzle for Volkswagen and Daimler Truck

dynaCERT: Analysts Extremely Bullish on the Bridge Technology

Using the HydraGEN™ solution, a compact electrolysis system generates small amounts of hydrogen and oxygen while the vehicle is in operation. This gas mixture is fed directly into the diesel engine's air intake system. The goal is more efficient combustion with lower fuel consumption and reduced emissions.

The company explicitly positions this technology as a retrofit solution for existing diesel fleets, particularly in heavy-duty transport, mining, the oil and gas industry, and stationary power generation. According to estimates by international industry organizations, there are tens of millions of heavy-duty diesel-powered commercial vehicles in operation worldwide, suggesting a huge market potential.

Since the recent leadership change, in which former COO Kevin Unrath took over as CEO from Jim Payne, commercialization has been the top priority. Most recently, key developments were announced in Vietnam, the cornerstone of the company's Southeast Asia strategy. The country is home to millions of diesel-powered trucks and construction vehicles, while high fuel costs continue to weigh on businesses.

dynaCERT has entered into a strategic partnership with a leading Vietnamese oil and gas company. In addition, the first pilot plants have been successfully launched at logistics centers in Ho Chi Minh City, Hanoi, and Hải Phòng. On the scientific front, the collaboration with the Ho Chi Minh City Vietnam University of Technology (HCMUT) is particularly noteworthy.

However, focusing solely on the cost aspect of dynaCERT's bridging technology does not tell the whole story. The CO₂ factor is gaining importance as regulatory frameworks and emissions targets become stricter. Here, too, the Canadian company offers a suitable solution for a market poised for strong future growth. Using the HydraLytica™ platform, fuel consumption and emissions data can be measured in real time. In the future, monetizing CO₂ savings through the issuance of certificates could establish an additional, high-margin revenue stream.

dynaCERT shares are currently trading at approximately CAD 0.11, giving the Canadian company a market capitalization of around CAD 56 million. Analysts at GBC attest to the stock's enormous upside potential with a price target of CAD 0.75. To aggressively pursue their growth strategy, the Canadian company recently raised CAD 5 million through a capital increase.

Volkswagen: Sharp Drop in Profits in the Second Quarter

The automaker's profits plummeted by about a third in the second quarter. Bottom line, the group earned a meagre EUR 1.54 billion on revenue of EUR 82.4 billion. Global deliveries declined by nearly 9%. The Chinese market, which accounts for a significant share of just over 20%, plummeted by more than a third. The group also lowered its revenue forecast for the current fiscal year.

Quick results are not to be expected, given years of missed opportunities and delayed reforms. Up to 50,000 additional jobs and four production plants are currently under review, while 50,000 positions are already scheduled to be cut by 2030. The company's model range is also set to be reduced by half. According to CEO Oliver Blume, the goal is to secure the necessary supervisory board approvals by the end of the year, paving the way for the implementation of the cost-cutting programme.

Shares have fallen by about 30% since the start of the year to a current price of EUR 71, the lowest level since 2010. US research firm Bernstein confirmed its price target of EUR 100, representing an upside of just over 40%. The experts viewed the confirmed target range for the operating return on sales in 2026 as positive.

Daimler Truck: Deutsche Bank Is Bullish

Daimler Truck is one of the world's largest manufacturers of commercial vehicles. Having emerged from the spin-off from Mercedes-Benz, the company now focuses exclusively on trucks, buses, and related services. The group is pursuing a multi-pronged approach to powertrains.

This year, Daimler Truck announced plans to further expand its battery-electric portfolio and bring the next generation of hydrogen-powered fuel cell trucks to market. At the same time, the German company is continuing to develop its conventional diesel powertrains.

The stock has gained about 20% since the beginning of the year and is currently trading at around EUR 46. Analysts at Deutsche Bank recently raised the price target from EUR 50 to EUR 54 and reaffirmed their "Buy" rating. The analysts cite lower tariff costs and a stronger US truck market as reasons for the price target revision. On August 31, Daimler Truck will present its second-quarter results.

Even one of the world's most innovative truck manufacturers does not currently expect the diesel engine to disappear completely in the short term; Daimler Truck is pursuing a multi-pronged approach. dynaCERT's innovative bridge technology offers many advantages. Commercialization is proceeding at a rapid pace. Analysts at GBC see the share reaching CAD 0.75. Currently, the share price stands at just CAD 0.11. Volkswagen faces major cutbacks. It remains unclear whether and when the automaker will get back on track for success.