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Lauson Manufacturing Company was founded in 1895 by John Lauson. By 1929, the Lauson family had sold its interest in the company. In 1935 the company was sold to the Marshall and Illsley Bank and The People’s Bank of New Holstein, and again sold in 1941 to Hart-Carter. It had grown into one of the largest manufacturers of small gasoline engines in the United States by 1956, when it was purchased by Tecumseh Products Company. Tecumseh dismantled most of the Lauson Manufacturing Company and used the assets to create Tecumseh Power Company.
The Lauson brand continues to be used on engines, and on TecumsehPower by Lauson engines.