8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
                       PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

        Date of Report (Date of earliest event reported): MARCH 15, 2007

                            TECUMSEH PRODUCTS COMPANY
             (Exact name of registrant as specified in its charter)

                                                       
        MICHIGAN                         0-452                    38-1093240
(State or other jurisdiction           (Commission              (IRS Employer
     of incorporation)                 File Number)          Identification No.)



                                                               
        100 EAST PATTERSON STREET
           TECUMSEH, MICHIGAN                                       49286
(Address of principal executive offices)                          (Zip Code)



       Registrant's telephone number, including area code: (517) 423-8411

                                (NOT APPLICABLE)
         (Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

     [ ]  Written communications pursuant to Rule 425 under the Securities Act
          (17 CFR 230.425)

     [ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
          CFR 240.14a-12)

     [ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the
          Exchange Act (17 CFR 240.14d-2(b))

     [ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the
          Exchange Act (17 CFR 240.13e-4(c))



ITEM 2.04 TRIGGERING EVENTS THAT ACCELERATE OR INCREASE A DIRECT FINANCIAL
     OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT.

     As previously reported, our Brazilian engine manufacturing subsidiary, TMT
Motoco, has its own financing arrangements with Brazilian banks pursuant to
which it is required to pay principal installments of various amounts through
2009. Historically, TMT Motoco has experienced negative cash flows from
operations, indicating that it may not have sufficient liquidity to make all
required debt repayments as currently scheduled. On November 21, 2006, TMT
Motoco lenders representing more than 60% of the outstanding amounts borrowed
executed an out-of-court restructuring agreement whereby scheduled maturities
were deferred for eighteen months, with subsequent amortization over the
following eighteen months.

     Two banks representing less than 40% of the outstanding amounts borrowed
did not participate in the out-of-court restructuring agreement, so TMT Motoco
initiated a court proceeding under a Brazilian statute to impose the terms of
the restructuring on those two banks. Meanwhile, TMT Motoco continued
negotiations with one of the two banks, and that bank rolled over principal
installments that otherwise would have come due. TMT Motoco ceased making
further payments to the other dissenting bank effective November 15, 2006, and
that bank started legal action to collect its debt. The Brazilian court stayed
the bank's collection activities while the court considered TMT Motoco's action
to impose the terms of the restructuring on the dissenting banks.

     On March 15, 2007, the Brazilian court ruled against TMT Motoco, lifted the
stay on the bank's collection proceedings, and implemented sweep procedures for
TMT Motoco's bank accounts. These actions had the effect of accelerating TMT
Motoco's debt to that bank, which totals approximately $18 million, making it
all now due and payable and enabling the bank to pursue its remedies for
collection under Brazilian law. TMT Motoco has initiated an appeal of the
Brazilian court's decision and meanwhile has placed that plant on vacation
furlough. As a result of these developments, TMT Motoco may be forced to file
for protection under Brazilian bankruptcy law.

     The events described above may enable our domestic lenders to accelerate
repayment of their debts unless they agree to waive the defaults or enter into
curative amendments to our first and second lien credit agreements. We are
engaged in discussions with them and have received no indication that they
intend to accelerate or that they will not agree to any requested consents,
waivers, or amendments, but there can be no assurance that we will reach an
agreement or as to what the terms of any such agreement may be.

     Our management is assessing what impact the developments at TMT Motoco may
have on our other businesses, including our Brazilian compressor manufacturing
subsidiary, Tecumseh do Brasil Ltda. Management is working to protect these
other businesses from any adverse effects of the events at TMT Motoco to the
greatest extent possible.

ITEM 7.01 REGULATION FD DISCLOSURE.

     On March 21, 2007, we issued a press release about the events described in
Item 2.04. We are furnishing a copy of the press release as an exhibit to this
report.



ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

     The following exhibit is furnished with this report:



Exhibit No.   Description
- -----------   -----------
           
   99.1       Press Release dated March 21, 2007


                                   SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                        TECUMSEH PRODUCTS COMPANY


Date: March 21, 2007                    By  /S/ James S. Nicholson
                                            ------------------------------------
                                            James S. Nicholson
                                            Vice President, Treasurer and Chief
                                            Financial Officer

     NOTE: The information in Item 7.01 of this report and the related exhibit
is not to be deemed "filed" for purposes of Section 18 of the Exchange Act or
otherwise subject to the liabilities of that section unless the registrant
specifically incorporates it by reference into a filing under the Securities Act
or the Exchange Act.






EXHIBIT INDEX



Exhibit No.   Description
- -----------   -----------
           
   99.1       Press Release dated March 21, 2007

EX-99.1

                                                                    EXHIBIT 99.1

        TECUMSEH PRODUCTS COMPANY PROVIDES UPDATE ON SITUATION IN BRAZIL

TECUMSEH, Mich., March 21, 2007--Tecumseh Products Company (Nasdaq: TECUA,
TECUB) (the "Company") announced today that it has initiated an appeal of a
Brazilian court's decision, entered on March 15, 2007, denying its request to
impose financial restructuring terms for the Company's Brazilian engine
manufacturing subsidiary, TMT Motoco, on two of TMT Motoco's lenders. TMT Motoco
and a majority of its lenders had previously signed an out-of-court
restructuring agreement extending payment dates for TMT Motoco's debt on the
same terms sought to be imposed on the two dissenting lenders in the court
action.

In conjunction with its ruling, the Brazilian court lifted a stay that had
previously prevented one of the dissenting banks from pursuing collection
proceedings. The court also implemented sweep procedures for TMT Motoco's bank
accounts. These actions had the effect of accelerating TMT Motoco's debt to the
dissenting bank, which totals approximately $18 million, making it all now due
and payable and enabling the bank to pursue its remedies for collection under
Brazilian law. Pending its appeal of the Brazilian court's decision, TMT Motoco
has placed its plant on vacation furlough. As a result of these developments,
TMT Motoco may be forced to file for protection under Brazilian bankruptcy law.

These events may enable the Company's domestic lenders to accelerate repayment
of their debt unless they agree to waive the defaults or enter into curative
amendments to the Company's first and second lien credit agreements. Tecumseh is
engaged in discussions with these lenders and has received no indication that
they intend to accelerate or that they will not agree to any requested consents,
waivers, or amendments, but there can be no assurance that the Company will
reach an agreement or as to what the terms of any such agreement may be.

Tecumseh's management is assessing what impact the developments at TMT Motoco
may have on its other businesses, including its Brazilian compressor
manufacturing subsidiary, Tecumseh do Brasil Ltda ("TdB"). The Company's
management is working to protect these other businesses from any adverse effects
of the events at TMT Motoco to the greatest extent possible. In that regard, the
Company noted that it expects to meet all existing commitments to its customers
in North America as it currently has six weeks of inventory en route from Brazil
and it also has inventory available in its warehouses in Juarez, Mexico and
Dunlap, Tennessee.

BACKGROUND INFORMATION
As previously disclosed, TMT Motoco has its own financing arrangements with
Brazilian banks pursuant to which it is required to pay principal installments
of various amounts through 2009. Historically, TMT Motoco has experienced
negative cash flows from operations, indicating that it may not have sufficient
liquidity to make all required debt repayments as currently scheduled. On
November 21, 2006, TMT Motoco lenders representing more than 60% of the
outstanding amounts borrowed executed an out-of-court restructuring agreement
whereby scheduled maturities were deferred for eighteen months, with subsequent
amortization over the following eighteen months.



Two banks representing less than 40% of the outstanding amounts borrowed did not
participate in the out-of-court restructuring agreement, so TMT Motoco initiated
a court proceeding under a Brazilian statute to impose the terms of the
restructuring on those two banks. Meanwhile, TMT Motoco continued negotiations
with one of the two banks, and that bank rolled over principal installments that
otherwise would have come due. TMT Motoco ceased making further payments to the
other dissenting bank effective November 15, 2006, and that bank started legal
action to collect its debt. The Brazilian court stayed the bank's collection
activities while the court considered TMT Motoco's action to impose the terms of
the restructuring on the dissenting banks.

In its appeal of the Brazilian court's March 15 ruling, the Company will seek a
stay of the lower court's actions and continue its efforts to bind the
dissenting banks to the terms of the out-of-court restructuring agreement.

CAUTIONARY STATEMENT RELATING TO FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 that are subject to the safe
harbor provisions created by that Act. In addition, forward-looking statements
may be made orally in the future by or on behalf of the Company. Forward-looking
statements can be identified by the use of terms such as "expects", "should",
"may", "believes", "anticipates", "will", and other future tense and
forward-looking terminology.

Readers are cautioned that actual results may differ materially from those
projected as a result of certain risks and uncertainties, including, but not
limited to, i) changes in business conditions and the economy in general in both
foreign and domestic markets; ii) the effect of terrorist activity and armed
conflict; iii) weather conditions affecting demand for air conditioners, lawn
and garden products, portable power generators and snow throwers; iv) the
success of our ongoing effort to bring costs in line with projected production
levels and product mix; v) financial market changes, including fluctuations in
interest rates and foreign currency exchange rates; vi) economic trend factors
such as housing starts; vii) emerging governmental regulations; viii)
availability and cost of materials, particularly commodities, including steel,
copper and aluminum, whose cost can be subject to significant variation; ix)
actions of competitors; x) the ultimate cost of resolving environmental and
legal matters; xi) our ability to profitably develop, manufacture and sell both
new and existing products; xii) the extent of any business disruption that may
result from the restructuring and realignment of our manufacturing operations or
system implementations, the ultimate cost of those initiatives and the amount of
savings actually realized; xiii) the extent of any business disruption caused by
work stoppages initiated by organized labor unions; xiv) the ability of the
Company to maintain adequate liquidity in total and within each foreign
operation; xv) potential political and economic adversities that could adversely
affect anticipated sales and production in Brazil; xvi) potential political and
economic adversities that could adversely affect anticipated sales and
production in India, including potential military conflict with neighboring
countries; xvii) our ability to reduce a substantial amount of costs in the
Engine & Power Train group associated with excess capacity; xviii) the



ongoing financial health of major customers; and xix) the continuing willingness
of our domestic and foreign lenders to cooperate with us in modifying covenants
and repayment terms as required to accommodate changes in our business. These
forward-looking statements are made only as of the date of this report, and we
undertake no obligation to update or revise the forward-looking statements,
whether as a result of new information, future events or otherwise.

CONTACTS:  Roy Winnick or Michael Freitag, Kekst and Company, 1-212-521-4800.

Press releases and other investor information can be accessed via the Investor
Relations section of Tecumseh Products Company's Internet web site at
http://www.tecumseh.com.