DEKRA involved in fight against the coronavirus pandemic
Accelerated Digitalization Is Creating New Opportunities
DEKRA is fulfilling its mission as stated in its articles of association – even under difficult conditions due to the coronavirus crisis. “In the three areas of life – on the road, at work, and at home – we are working to ensure the safety of people in Germany and around the world, even under these extremely difficult conditions,” explained DEKRA CEO Stefan Kölbl in a live stream for journalists during the balance sheet press conference. “Out in the field, we have minimized direct contact between our experts and customers,” said Kölbl. In addition, an increasing number of services – including audits, expert appraisals, training and certifications – are being performed either entirely or partially in digital format. The DEKRA CEO also made clear that the coronavirus pandemic would most likely derail the company’s 16-year growth trajectory in 2020. Despite an already challenging economic environment in 2019, the expert organization achieved revenue growth of 2.0 percent to EUR 3.4 billion with a workforce that reached almost 44,000 by the end of the year. Stefan Kölbl is anticipating a decline in revenue in 2020: “Performance will depend on how long the economic shutdown continues.” The consequences of the coronavirus crisis are already visible in the figures for the first quarter of 2020. Revenue fell by 5.0 percent compared with the same period last year.
- Expansion of remote testing and remote audits
- 70 percent of training changed to e-learning format
- Vehicle inspections and protective mask testing – sovereign tasks and systemically relevant services remain ensured
- No forecasts for 2020 due to impact of COVID-19
- Good performance in fiscal year 2019 despite economic slowdown
Systemically relevant periodic vehicle inspections are continuing despite COVID-19 but with special safety precautions in place. As stated by the German Federal Ministry of Transport, regular technical inspections are needed to ensure traffic safety and help to maintain logistics chains. “Our more than 500 testing locations are open throughout Germany – and we are continuing to carry out testing in vehicle workshops as well,” explained DEKRA’s CEO. “We are, however, following strict guidelines to protect both our customers and our employees.” The situation is very different in other countries. In France, truck inspections are still largely being carried out, but only one in ten testing locations for cars is still open for business. In Italy, vehicle inspections have been suspended until October and in countries such as Brazil, Spain and Slovakia all vehicle testing stations are closed. However, in Sweden, Denmark and the Czech Republic the majority of testing locations are open and in New Zealand one in four stations are still testing. The situation varies from state to the state in the US. In China, capacity is being ramped back up again.
DEKRA is making a particular contribution to safety during the coronavirus pandemic in its Product Testing division. Since mid-March 2020, DEKRA has been helping to stem the shortage of protective masks in Germany and elsewhere. “Our special laboratory in Essen is one of three entities recognized in Germany as a notified body for respiratory mask testing,” said Stefan Kölbl. Using testing principles that have been specially adapted for COVID-19, DEKRA is testing the protection afforded by coronavirus masks (coronavirus pandemic respiratory masks) and has ramped up its testing capacity fifty-fold. It is receiving inquiries not only from EU countries, but from countries outside Europe as well. Political leaders from various countries are even getting in touch in person to request the service. “Our experts in Essen – who are working in a three-shift rotation including weekends in compliance with legal requirements – are making a vital contribution in making sure that many more masks are available going forward,” said the CEO, commenting on the work of laboratory employees.
The digital transformation of business processes has gained momentum during the coronavirus crisis, with continuous growth in digital services. For example, DEKRA is now relying on software solutions to not only carry out more and more training online, but also to conduct audits, damage assessments and certifications. The constant aim is to simplify and speed up processes for customers. “The importance of avoiding personal contact as much as possible in the current climate will accelerate the acceptance of digital solutions in the marketplace,” stated the DEKRA CEO with certainty. That explains why remote appraisals are increasingly being performed in many countries also using i2i technology. This is where the customer sends photos or videos for assessment electronically and the expert records the facts and – depending on the extent of the damage – assesses the case either live or in a very short timeframe.
Stefan Kölbl also warned that it was important amidst the coronavirus crisis not to lose sight of the most urgent issues in relation to data security that are brought about by the digitalization of traffic, vehicles and other technical devices. There are key questions that need to be answered in the automotive environment, such as: Who owns the vehicle data? Who can use it, and for what purpose? After all, for connected and automated driving and for many other technical products besides, data plays a key role – including when it comes to safety.
In Stefan Kölbl’s opinion, it is not possible to issue a forecast for 2020 as a whole. “It is impossible to chart the future course of the coronavirus pandemic, which is having an impact globally. Therefore, it is not possible to calculate when economic and social life will return to normal.” That is why DEKRA is taking an extensive range of actions, including postponing some of its investments. Recruitment is being carried out very selectively based on region and services, and the short-time work measures already introduced for temp work and training will be extended to the corporate headquarters in Stuttgart in the foreseeable future.