Exhibit 99.1

TECUMSEH PRODUCTS COMPANY
(NASDAQ:  TECUA and TECUB)

           TECUMSEH PRODUCTS COMPANY TO RECORD FOURTH QUARTER CHARGES

Tecumseh, Michigan, January 4, 2005 . . . . Tecumseh Products Company announced
today that it will recognize pretax charges totaling $16.5 million against
fourth quarter 2004 results related to environmental matters and the
collectability of accounts receivable.

         As previously disclosed, Tecumseh has been participating in a
cooperative, voluntary cleanup effort with the Wisconsin Department of Natural
Resources ("WDNR") to investigate and cleanup PCB contamination in the watershed
of the south branch of the Manitowoc River, at and downstream from the Company's
New Holstein, Wisconsin facility. On December 29, 2004, the Company and TRC
Companies, Inc. entered into a Consent Order with the WDNR relating to this
effort known as the Hayton Area Remediation Project ("HARP"). The Consent Order
provides a framework for the completion of the remediation and regulatory
closure at HARP.

         Concurrently, on December 29, 2004, the Company and two of its
subsidiaries and TRC Companies and TRC Environmental Corporation (collectively,
"TRC") entered into an Exit Strategy Agreement (the "Agreement"), whereby the
Company transferred to TRC substantially all of its obligations to complete the
HARP remediation pursuant to the Consent Order and in accordance with applicable
environmental laws and regulations. TRC's obligations under the Agreement
include any ongoing monitoring or maintenance requirements and certain off-site
mitigation or remediation, if required. TRC will also manage any third-party
remediation claims that might arise or otherwise be filed against the Company.

         As required by the Agreement, the Company has also purchased a
Pollution Legal Liability Select Cleanup Cost Cap Policy (the "Policy") from
American International Specialty Lines Company. The term of the Policy is twenty
(20) years with an aggregate combined policy limit of $41 million. The policy
lists the Company and TRC as named insureds and includes a number of first and
third party coverages for remediation costs and bodily injury and property
damage claims associated with the HARP remediation and contamination. The
Company believes that the Policy provides additional assurance that the
responsibilities, obligations, and liabilities transferred and assigned by the
Company and assumed by TRC under the Agreement will be completed. The total cost
of the exit strategy insured remediation arrangement to Tecumseh was $16.4
million. This amount includes $350,000 that was paid to the WDNR pursuant to the
Consent Order to settle any alleged liabilities associated with natural resource
damages.

         As of September 30, 2004, the Company had accrued $2.4 million
representing the estimated cost of cleanup efforts to which the Company had
previously voluntarily agreed. The difference in Tecumseh's costs under the
Agreement and the amounts previously accrued will result in a non-recurring
charge in the fourth quarter 2004 of $14.0 million.

         "Like the Sheboygan Liability Transfer Agreement related to the
Company's PCB cleanup at its former Sheboygan Falls, WI site, this Exit Strategy
Agreement brings a degree of




financial certainty to the cost of cleaning up our two PCB cleanup sites. These
agreements are good for the people of the state of Wisconsin as they fund and
initiate comprehensive cleanup plans, and they demonstrate the Company's
continued commitment to be environmentally responsible. Furthermore,
approximately 50% of the Company's operating facilities throughout the globe are
certified under ISO 14001 Environmental Management Standard, and we expect every
one of them to achieve certification by the end of 2005." -- James S. Nicholson,
VP, Treasurer and CFO.

         In addition, during the fourth quarter, Murray Inc., a customer of the
Engine & Power Train Group filed for bankruptcy. At the time of the filing the
Company's outstanding accounts receivable with Murray was $3.3 million, for
which the Company had previously established a specific reserve of $0.8 million.
Based upon the bankruptcy proceedings, it is likely that the receivable is fully
impaired, and the Company will recognize an additional charge of $2.5 million in
the fourth quarter of 2004.

         Tecumseh Products Company is a full-line independent global
manufacturer of hermetic compressors for residential and commercial
refrigerators, freezers, water coolers, dehumidifiers, window air conditioning
units and residential and commercial central system air conditioners and heat
pumps; gasoline engines and power train for lawn mowers, lawn and garden
tractors, garden tillers, string trimmers, snow throwers, industrial and
agricultural applications and recreational vehicles; electric motors and
components, including AC and DC motors, blowers, gear motors and linear
actuators for a wide variety of industrial and consumer applications across a
broad range of industries; and centrifugal pumps, sump pumps and small
submersible pumps for industrial, commercial, marine and agricultural
applications.

         This discussion 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. 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. For a description of
these risks and uncertainties, refer to "Cautionary Statements Relating to
Forward Looking Statements" in the Management's Discussion and Analysis section
of Tecumseh Products Company's Annual Report to Shareholders and Form 10-K for
the year ended December 31, 2003.

Contact:          Pat Walsh
                  Director of Investor Relations
                  Tecumseh Products Company
                  (517) 423-8455