Six-month CEO Search at Tecumseh - Worth the Wait?

Tecumseh Products Company TECUA (NASDAQ) recently hired a new CEO, Edwin L. Buker 54, who comes from privately owned Citation Corporation of Birmingham, Alabama. Buker's selection comes approximately six months after former chairman and CEO Todd Herrick was ousted by the board. Subsequently, there was litigation over the board's move to push Herrick out as CEO and chairman. Ultimately, a legal arrangement was devised which would then lead to some role for Herrrick after input was made by the newly selected CEO. Buker's appointment at first glance, appears to be a good choice. After reviewing his work with Citation, however, I am somewhat more skeptical.

Buker was originally appointed the CEO of Citation, a maker of cast and machined metal components for the automobile industry, back in March of 2002. Prior to joining Citation, Buker had been vice president and general manager of the Chassis Systems division at Visteon Automotive; president, Electrical Systems -The Americas, for United Technologies Automotive; and vice president of New Model Development for BMW Manufacturing Corp. During his time as CEO with Citation, the company filed for bankruptcy two different times. Once in 2004 and more recently in March of 2007.

Under his tutelage, the company did succeed in emerging from bankruptcy, first in 2005 and then under the most recent filing, emerged in less than a month. While the automotive parts industry had been under intense pressure during this same period of time, I am not certain Buker is the best candidate for Tecumseh. He does have all the necessary industry qualifications and skills but two separate bankruptcy filings don't build the necessary confidence for his selection.