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): AUGUST 27, 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 1.01         ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.

     On August 27, 2007, we entered into an amendment to our domestic first lien
credit  agreement.  We entered into the amendment in anticipation of closing the
previously  announced  sale of the  Residential  &  Commercial  and Asia Pacific
divisions of our Electrical  Components  business segment,  which we expect will
occur shortly. Among other things, the amendment:

     o    allows us to escrow a portion of the proceeds to be received  from the
          purchaser and subordinates the lenders' interest in the escrowed funds
          to the purchaser's interest;

     o    permits  us  to  carry  out  pre-closing  restructuring   arrangements
          necessary in order for the transaction to close;

     o    deletes  the  minimum   adjusted  EBITDA  and  fixed  charge  coverage
          covenants for the third and fourth quarters of 2007;

     o    imposes a new  covenant  requiring  us to  maintain  a minimum  of $50
          million  in credit  availability  under the  agreement,  after  giving
          effect to the  existing  $10  million  availability  reserve,  thus in
          effect  requiring  us to  maintain a minimum of $60  million of credit
          availability;

     o    gives us greater latitude to sell unneeded fixed assets;

     o    reduces  the  lenders'  total  commitment  from $250  million  to $175
          million; and

     o    increases our interest rate by 0.25% per annum effective  December 31,
          2007.

     We paid the first lien lenders fees totaling  $425,000 in  connection  with
the amendment.

     Also on August 27,  2007,  we received a waiver from our second lien lender
that permits us to carry out the pre-closing  restructuring  arrangements needed
to allow the sale to close. We did not pay any fee for the waiver.

     We intend to repay the second lien debt in full with proceeds from the sale
and to apply the remaining  proceeds  (net of escrows and sale  expenses) to pay
down the first lien debt.


                                   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: August 31, 2007                   By    /s/ James S. Nicholson
                                            -----------------------------------
                                            James S. Nicholson
                                            Vice President, Treasurer and Chief
                                            Financial Officer