Checker Motors Corporation was a vehicle manufacturer, and later an automotive subcontractor, based in Kalamazoo, Michigan. The company was established by Morris Markin in 1922, created by a merger of the firms Commonwealth Motors and Markin Automobile Body, and was initially named the Checker Cab Manufacturing Company. The manufacturer was originally based in Chicago, before moving to Kalamazoo in 1923. The company was renamed Checker Motors in 1958.
Checker made the iconic American taxi cab, valued by taxicab companies for its durability in heavy use. Special features included wide rear doors, large rear seats and trunks, and jump seats for two extra passengers. In later years, the company had trouble competing with fleet discounts offered by the larger manufacturers, as well as economies of scale in procuring components. The final models were produced in 1982. After 1982, Checker invested significantly in the third party manufacturing business, serving GM and Chrysler.
On January 16, 2009, the company filed for Chapter 11 protection in U.S. Bankruptcy Court.
Corporate history Pre-Checker history and its formation Commonwealth Motors in 1919, introduced the Mogul Taxi. Commonwealth could trace its history back to the DeSchaum Motor Syndicate, later renamed Suburban Limiteds, was founded in 1908 in Buffalo, New York. The Mogul combined the sturdy Commonwealth frame with a purpose-built taxicab body from Lomberg Auto Body Manufacturing Company, which was founded in the late 1910s by Russian immigrant Abraham Lomberg in Joliet, Illinois. Soon after, Lomberg looked for further capital to increase the capacity to build the expected orders for the Mogul, and took out a $15,000 personal loan from businessman, Morris Markin. Markin had emigrated from Russia in 1913 and worked as a clothier in Chicago, Illinois, earning his fortune by winning a contract to supply uniforms to the United States Army during World War I.
However, demand for the Mogul was lower than expected and Lomberg defaulted on the loan, surrendering his company to Markin in late 1920. When Markin took over he renamed the business Markin Automobile Body. Mogul sales continued to be slow, but Commonwealth was rescued temporarily from bankruptcy by a large order from Checker Taxi in late 1920. At the time, Checker Taxi was a privately owned taxi operator based in Chicago that had no affiliation with Markin. However, the order only kept Commonwealth afloat for a short while, and eventually it was unable to repay its creditors and entered it bankruptcy in late 1921. Markin offered Commonwealth's receivers Markin Automobile Body shares for the company's assets. Markin was helped by the assets of Markin Automobile Body being valued at $182,703, a figure that was greater than its actual worth, and that it was probably the only offer on the table. The offer was accepted by the receivers in October 1921, with Markin merging the two firms in May 1922 as the Checker Cab Manufacturing Company in May 1922.
Checker Cab produced the Mogul alongside Commonwealth passenger cars briefly, but soon began concentrating on commercial sales, introducing the Checker Model C on June 18, 1922, followed by a Mogul variant, the Model H, later that year. Markin is credited with devising and applying the brand's signature checkerboard trim to the vehicle's beltline. With the ongoing war between Checker Taxi and Yellow Cab, including Markin's house being bombed, Markin decided he needed to move his business away from Chicago. Checker Cab moved to Kalamazoo in 1923, taking over two factories previously operated by Dort Motor Car Company and Handley-Knight. In 1930, Checkers came in either black, maroon, yellow or canary.
Consolidating the taxi market Markin gradually acquired the unrelated taxicab operator Checker Taxi of Chicago over the course of the 1920s. In 1929, he purchased Checker Taxi's rival Yellow Cab Company from John D. Hertz, who had grown weary of the decade-long Chicago Taxi War between Checker and Yellow Cab. The two operators were merged into the Parmelee Transportation Company. Yellow Cab previously had used taxicabs built by a subsidiary, the Yellow Cab Manufacturing Company, but after Yellow Cab (the taxi operator) was folded into Parmelee, both companies turned to Checker Cab instead, ensuring a steady demand for its taxicabs. Yellow Cab Mfg. had been established in 1920 and following its acquisition by General Motors (GM) in 1925, was reorganized as Yellow Truck & Coach. By that time, Yellow Cab Mfg. had begun to pivot towards producing motorbuses, but continued to manufacture taxicabs. Markin would go on to acquire the principal taxicab operating companies in New York City, Pittsburgh, and Minneapolis. From 1922 to 1928, Checker Cab made and sold 8,019 taxicabs to various operators.
Markin's captive market strategy proved sound during the Great Depression; with Checker Cab sales holding steady, the company continued to return a reliable profit. Although the year-to-date profit for Checker Cab in May 1931 was just US$665, it was still a positive profit when many automobile manufacturers were struggling, prompting GM to rename the Yellow Cab company to General Cab and to re-enter the taxicab market. However, operators took advantage of GM's generous terms which did not include a repayment schedule. General Motors withdrew from the market in 1938. Checker's strategy also attracted the attention of the federal government, which later brought an antitrust suit against Checker and Markin under the Sherman Act. Although the case was initially dismissed by the United States District Court for the Northern District of Illinois, that decision was reversed by the Supreme Court of the United States in 1947 and decided in favor of the defendants in 1948, who argued successfully that Checker Cab's successes with taxicab operators were due to the marque's inherent advantages and not the complex relationships between the manufacturer and operators: because Checker Cab's vehicles were purpose-built for the taxicab industry, operators naturally would choose them over modified passenger cars. After another appeal, the Supreme Court upheld the lower court's verdict in 1949.
When Parmelee was founded, Markin owned 12% of the shares of Checker Cab Mfg.; his share declined to 5% by mid-1930. The largest shareholder was a group led by John J. Raskob and millionaire Pierre S. duPont, which controlled 34%. 1931 was a profitable year for Checker, but that would soon change in 1932 as the depression finally caught up with the company. After several profitable years, sales collapsed and Checker started to bleed money, generating losses month after month. So bad was the economy that Checker shut down for several weeks at the tail end of 1932. In 1932, Checker Cab introduced the Model T and switched from Buda engines to Lycoming, which was owned by E. L. Cord. 1933 found many auto manufacturers in the midst of significant financial issues. Checker now needed to recapitalize. Unfortunately for Checker CEO Morris Markin, a hostile corporate takeover ensued via a series of capital transactions. The corporate board was reduced in size by the Raskob-duPont group in June 1933; the smaller board, which included duPont, subsequently voted to oust Markin.
However, Markin still retained his small share of ownership and held options to acquire a 60 percent share of the company. Ten days later Markin sold those options to E. L. Cord for less than $1 million; Checker Cab became part of the Cord Corporation and Markin was reinstalled as head of the company. With funds secured and new ownership in place, Checker Cab was integrated into the Auburn–Cord–Duesenberg (A-C-D) group, allowing Checker to operate autonomously and still draw on engineering talent from the larger group, including Auburn vice-president of engineering Herbert C. Snow.
Three short years later Cord and Markin came under investigation by the Securities and Exchange Commission for their dealings in Checker Cab stock, which had raised the price from US$7 per share in November 1935 to $69 per share in April 1936. In order to avoid prosecution, Cord sold the Cord Corporation to the Aviation Corporation in 1937. Morris Markin bought out Cord's interest in Checker Cab and was able to secure complete control of Checker. A-C-D eventually folded in the wake of the stock scandal but the now-independent Checker continued to produce taxicabs. Between 1929 and 1942, when production was suspended for World War II, Checker Cab made 29,260 cabs.
Return to tradition After the war, Checker Cab began developing several new models which never made it to production; the Model A2 that was introduced in 1947 was mechanically similar to the pre-war (1939) Model A. The Model A also had switched to a new engine supplier; Checker cabs now used the Continental inline-six. The A2 was introduced alongside the A3, which had a different internal configuration to seat up to eight passengers. The A2/A3 went through minor modifications as the A4/A5 and A6/A7.
In addition to taxicabs, Checker briefly built the chassis for the Series E transit buses; the primary customer was Detroit Street Railways.
In 1956, Checker introduced the A8, which continued with minor styling changes as the A9/A10 and A11/A12 through the end of Checker vehicle production in 1982. Also that year, the company changed its name to Checker Motors Corporation. The A9 was the designation for the taxicab model, while the A10 was the corresponding vehicle sold to the public as a passenger car; a similar relationship exists between the A11 and A12, which were introduced in 1961.
By the 1970s, conventional automobiles from the Big Three were replacing the purpose-built Checker Cabs; the Checker was considered "too big, too cumbersome, [and] too thirsty" as it had been built to meet obsolescent requirements.
In 1982, with the body stamping dies wearing out, production of the Checker Cab was discontinued.
Subcontracting After winding down vehicle production in 1982, Checker Motors served as a subcontractor, supplying automotive parts and stampings to Detroit-area manufacturers.
In 1989, Checker Motors and Checker Holding Company were involved in a reverse acquisition with International Controls Corporation (Great Dane Trailers), and the company later changed its name to CRA Holdings. The company was reorganized in 1995 into three wholly owned subsidiaries: Yellow Cab (owns and leases taxicabs in Chicago), Chicago Autoworks (taxicab repair and other services) and CMC Kalamazoo. Other subsidiaries include American Country Insurance Company (a provider of property and casualty insurance), Great Dane (the largest manufacturer of truck trailers, containers and chassis) and South Charleston Stamping & Manufacturing Company. The company was renamed Great Dane Limited Partnership, and was acquired by Chicago-based CC Industries.
Purchased in August 1989, South Charleston Stamping was sold by Checker to Mayflower Corp. in November 1996. South Charleston Stamping had been owned previously by Volkswagen and supported Volkswagen automobile production in Pennsylvania in the late 1970s.
Checker Motors operated as a subsidiary of CC Industries as an automotive subcontractor, primarily for General Motors, into the 21st century. Checker made body stamping for various GMC/Chevrolet truck lines and chassis components for Cadillac. David Markin, son of founder Morris Markin, continued to act as CMC Chief Executive Officer.
In 2008, due to the late-2000s recession and high gasoline prices, sales at GM and other automakers plummeted. As a major supplier to GM, Checker saw its sales drop significantly. The company had net sales of $61 million in 2008 and projected 2009 sales of only $34.5 million, a decline of 43%. During the summer of 2008, Checker employed about 340 workers.