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Some more thoughts on the Schindler affair June 14, 2006

Posted by fukumimi in Economy & Business, Japan.

[See previous post for background]

So, Schindler finally got around to doing a press conference, and also meeting with the Minato-Ku Ward people and the residents of the apartment block where the accident occurred. The family of the victim refused to meet the representatives of Shindler at this time. Perhaps they feel that it was too little, too late. It would be interesting to see how they mapped out their priorities. The order of the meetings appeared to be Media, Ward office, then residents.

It should be noted that the Roland Hess, the head of the elevator division of Schindler Holding AG, reportedly did not attend the meeting with residents. This has attracted further criticism for apparently putting the media and bureaucrats ahead of the people affected by the accident. 

Ken Smith, the representative director of Schindler Elevator Japan, isn't winning many friends. He comes across as if he is reciting a script. He has shown no emotion and appears detached and cold. 

Whilst it may be that the problem was maintenance related and not due to any inherent design flaws, Schindler's handling of this incident has been extremely poor.


1. Gen Kanai - June 14, 2006

Stick a fork in ’em, Schindler Japan is done.

There won’t be any developer who will install a Schindler elevator in Japan for the next 5 years.

2. fukumimi - June 14, 2006


You’d think so, right? But it appears that according to the rules that apply with regards to public sector tenders, there is no way of excluding a company unless they have been convicted of a criminal offense, apparently.

Schindler only has 1% market share, but that share is more than 10% for public sector tenders.

So unless Schindler goes into self-imposed exile, they can still continue to bid on tenders. Schindler has been very aggressive in their bidding and for the last few years they were a leading contractor for public tenders. Their prices were so aggressive in fact that several of their bids were investigated because they were barely above the minimum allowable bid. Smells like some price dumping going on there…..

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