Parts supplier motors in

By JIM LEUTE ( Contact )   Tuesday, Feb. 10, 2009
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— Rock County has lost vehicle manufacturing, but it now has an engine business.

Janesville businessman Jim Grafft on Monday bought the assets of the engine division of TecumsehPower Co. and plans to move the operation to Rock County.

Until TecumsehPower ended engine production in December, the company made gas engines for snowblowers, generators and other lawn and garden, industrial and agricultural applications.

Initially, Grafft will supply parts for TecumsehPower engines. Down the road, Grafft said his company could produce engines locally, a step that would rev up the potential for new, well-paying jobs.

TecumsehPower, a direct competitor of Briggs & Stratton in the small engine market, lost a key customer last year.

"At one point, they were building 2 million to 4 million engines a year," Grafft said. "Then 60 percent of their business disappeared.

"That created a huge void in the market," he said, adding that TecumsehPower supplied about 80 percent of engines for snowblowers.

Last week, TecumsehPower sold the assets of its transmission business to Husqvarna Outdoor Products.

TecumsehPower engines primarily were built in Dunlap, Tenn. Component plants in Indiana and the Czech Republic supported the Tennessee plant.

At this point, Grafft's purchase of TecumsehPower is similar to a move he made in 1982. Grafft and his Janesville-based Certified Parts Corp., a national parts distributor for recreational equipment, bought Arctic Cat, essentially cornering the market on parts for the snowmobile line.

Grafft said his first challenge will be to consolidate in Rock County the TecumsehPower parts. He owns the former highway trailer building in Edgerton, as well as buildings in Janesville on Jackson, Pearl and Racine streets.

Many of the first shipments of parts will go to the Racine Street building.

If he ever moves to engine production, Grafft said he'd need about 200,000 square feet of space, which is the size of his Edgerton facility.

In order to build engines, Grafft said he would need to study the market and determine the players and their relationships with engine companies.

"A lot of those relationships go back years, but there are certainly some smaller original equipment manufacturers—even bigger ones—that don't have relationships with engine companies," he said.

Grafft would not reveal the purchase price for the assets, which a Los Angeles-based private equity firm bought in 2007 along with the transmission business for $51 million.

TecumsehPower engines date to 1895, when John Lauson built his first internal combustion engine in New Holstein to make life easier for Wisconsin farmers. In 1905, Lauson introduced an engine designed for cold Midwest winters. Dubbed the "Frost King," the engine circulated a solution of calcium chloride that helped it start and keep running.

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(28)
truth1
Dec 8, 2009 at 12:44 p.m.
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Its good to see that some of the larger engines are still made here....In the last year or so I haven't seen ANY American made engines under 20hp that didn't say Briggs & Stratton on them, all the rest are china.....Strange, I haven't seen any Tecumseh engines ANYWHERE on ANYTHING.

dumbledorf
Dec 8, 2009 at 12:11 p.m.
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Generac Power Systems in Whitewater WI makes and produces the 990cc V-Twin engine that they put in the Worlds Fastest Lawnmower, the Dixie Chopper, also featured on Tool Time with Tim Allen, minus the jet engine....

The engine market is a fast paced competitive market.

You will never compete with China until the American people will be satisfied with making $2 a day.

toasty2k
Jun 17, 2009 at 8:05 p.m.
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Guardians_of_the_Planet,
Guess what I drive a KIA. Why? Because I could afford it. My wife and I originally wanted an Acadia but it was way to expensive, We wanted a new SUV for our growing family and got just about the same features ot he Acadia. What are we suppose to do? Go broke? Live in it? I thank you for your ignorance. By the way, we are quite pleased to be supporting our American union dock workers and railroad workers.

Guardians_of_the_Planet
May 11, 2009 at 5:43 a.m.
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I went to F&F on Saturday to buy (3) things. A bow saw, a gardening shovel, and hose washers. All were made in China...I left empty handed.

I went to China Depot to buy a 10' step ladder, which were also made in China...I left empty handed.

If our local businesses are pushing Chinese products, and we all lose are jobs, who will shop there when were all unemployed?

Step up to the plate people, quit selling us out to China one piece at a time, and buy American!

Those of you driving (K)orea (I)nvades (A)merica cars should be ashamed.

Chinese lawnmowers, snowblowers?

Incredible !!!

cheesehead4
Feb 17, 2009 at 10:03 p.m.
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I was employed at TecumsehPower in New Holstein, WI for 33.5 years. I retired just before Tecumseh closed it's New Holstein operations and left many, very good people, without jobs or insurance. People that knew how to build a good engine and had made Tecumseh the BEST in their field. Tecumseh also left them with a severance package that would make you cry. I am not trying to be negative, just think that company greed has hurt many honest and hard working people. In my opinion, this is why this country is where it is today. Just hope this move can give people in that area a good job for a long time.

Peety
Feb 12, 2009 at 8:42 a.m.
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Wow!! More sub paying jobs!! Try and support a small family with these great jobs!

QandAsession
Feb 11, 2009 at 4:04 p.m.
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Truthteller, you forgot one. He also owns the old supper club across from the Redwood Hotel.

werty
Feb 11, 2009 at 5:41 a.m.
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Bring the JOBS... Get these people off their soap box computers.

truthteller
Feb 11, 2009 at 4:48 a.m.
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This is too funny. This guy is just a rich boy playing with money like the rest of us common folk buy junk on ebay. Monteray hotel,old rock county jail,movie theater fiasco,feedmill on south pearl............I am sure there are more examples of his business prowess. I would not count on this latest whim to create jobs. Although I must say even a broke clock tells the right time twice a day.

sannio
Feb 10, 2009 at 6:45 p.m.
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Some people have criticized Chinese motors, and maybe rightly so. I remember when "Made in Japan" usually meant cheaply made, too, but look at them now. How many countries send their own people into space using their own space technology? Three. USA, Russia, and China.

marymac4
Feb 10, 2009 at 5:43 p.m.
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LOL we get a little good news and the negative is what you find.......I hope Jim can get it going. With the economy the way it is I would think there would be at least a little positive for the area.

RichE95
Feb 10, 2009 at 3:46 p.m.
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Regardless of how many jobs come to the area, there will be some jobs. Hopefully the class warfare attacks on people like Jim Grafft and the late Ken Hendricks will cease. These are the the very people who create jobs. We owe them thanks and respect rather than "spread the wealth" talk that we hear from Jim Doyle and President Obama types. Mr President and Mr Governor - business is not the enemy whether it be small or large. I remember when these politicians and their union friends would attack General Motors. We now wish we still had GM and perhaps we should have appreciated it more.

localboysince1968
Feb 10, 2009 at 2:25 p.m.
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The EPA needs to have a catalytic put on them...

Zoom
Feb 10, 2009 at 1:36 p.m.
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The business will be supplying parts for the millions of the Tecumseh engines out there, not solving the climate problem. Even if he never starts small engine production, it's a business.

truth1
Feb 10, 2009 at 12:43 p.m.
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beeferer- Thats interesting..
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Since cars have had to have catalytic converters for decades and now these engines will have them, will motorcycles have to have them?..If not, why not?
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The EPA needs to answer that question.
.

QandAsession
Feb 10, 2009 at 12:42 p.m.
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Beeferer, whoaaaaa slow down! You bring something informative to the table instead of the usual "slowdown" comment. Good work supporting my comment. Keep up the progress.

beeferer
Feb 10, 2009 at 12:41 p.m.
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Please use Chinese engines at your own risk. If their recent problems with pet food and baby formula is any indication of the kind of quality control they have in place over there, then I would try to avoid ingesting their engines for fear of contacting salmonella!

beeferer
Feb 10, 2009 at 12:37 p.m.
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From JS Online-September 05, 2008:
The U.S. Environmental Protection Agency ordered a 35% reduction in smog-forming hydrocarbons and nitrogen oxides emissions from makers of lawn and garden equipment in 2011.

Other reductions will be required for boats and other recreational watercraft, beginning in 2010.

The changes will force companies such Briggs & Stratton, Kohler Co. and Mercury Marine to modify equipment. Makers of marine engines are expected to use catalytic converters for the first time, the EPA said.

Roadmaster
Feb 10, 2009 at 12:36 p.m.
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TecumsehPower had produced engines for these brands: Ariens, Craftsman, Cub Cadet, Huskee, Husqvarna, MTD Gold Series, Murray, Toro, Poulan Pro,Troy-Bilt, White Outdoor, Yard Machines, Yard Man

QandAsession
Feb 10, 2009 at 12:13 p.m.
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Graft, have you thought about teaming with the UW to create an alternative to the Chinese engines? Since small engines are notorious polluters, a clean, quiet engine would be a breakthrough that people may be ready for. For this to work you must have equal performance, product life, replacement parts, and cost. Future taxes on gas related to auto travel, and pollution guidelines may be the boost you need. There may even be a way to team a product like this with tax credits and incentives to sweeten the deal. We know you like those!

maresyann
Feb 10, 2009 at 11:48 a.m.
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Rooster...the man is local, owns buildings in Rock County already. Why wouldn't he stay here? Your comment makes no sense to me.

janesvillean
Feb 10, 2009 at 11:26 a.m.
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It didn't say jobs because he isn't sure when production will start and if so how large his contracts will be. It may be nearly impossible to restart those contracts (even with an injection of calcium chloride because of the cold US economy). Still, the Tecumseh brand retains substantial equity and consumer loyalty.
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It would be great if this were a green business, as small engines are a significant pollution source, but the R&D may be prohibitive.

rooster
Feb 10, 2009 at 11:06 a.m.
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here is what you didn't read:

janesville need the jobs so the folks will work for less. (good wages and benefits are a pipe dream in the present economy.)

obviously, they want to reside here because of the extra gyms at the high schools

janesville will give them anything they want to make it look like things are turning around and that the incompetent city council and manager are doing their jobs

the implication is janesville, maybe, but meanwhile, where in rock county.

my suggetion, put them in the flooded out schulers building

truth1
Feb 10, 2009 at 11 a.m.
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Its going to be interesting to see if the china engines are going to be reliable.
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The briggs and tecumseh engines I have start and operate FLAWLESSLY in ALL weather no matter how cold/frozen it is.
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truth1
Feb 10, 2009 at 10:56 a.m.
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Anyone checked out a new snowblower over the last year or two?
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Almost EVERY brand has an engine from china where they used to be a briggs or tecumseh.
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Look on the engine real close, you'll see it.
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whoanellie
Feb 10, 2009 at 10:26 a.m.
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Is it going to bring jobs to us? It never says or if it did how many?

Flipside
Feb 10, 2009 at 10:09 a.m.
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Great news for potential jobs to be brought in. A significant challenge with this kind of product line will be how to make it affordable, yet compliant with emission regulations. Figure that one out, and this will be golden...

snarly
Feb 10, 2009 at 10:07 a.m.
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