Tecumseh To Halt Engine Manufacturing In Italy

Posted on January 9, 2006

Tecumseh Products Co. said it will cease engine manufacturing at its Tecumseh Europe S.P.A. unit, Turin, Italy, a move that will affect about 375 employees. The company said it will record a charge related to the shutdown, which will be done as a court-supervised liquidation

"Although, we regret having to cease our Engine & Power Train Group activities in Italy, we believe that this is a necessary choice in order to improve performance of the group," said Todd W. Herrick, chairman and CEO of Tecumseh.

The shutdown is part of a performance improvement program for Tecumseh's Engine & Power Train Group. In August 2005, Tecumseh engaged Alix Partners to accelerate the implementation of the Engine & Power Train Group's performance improvement plan. Losses attributable to these European operations were approximately $6.5 million in 2005.

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