[4] 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.

[14] 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.

In addition to taxicabs, Checker briefly built the chassis for the Series E transit buses; the primary customer was Detroit Street Railways.

While the United States economy was in full recession, Checker Motors CEO David Markin fell victim to the Ponzi scheme started and run by Bernie Madoff.

In March 2009, a committee of unsecured creditors in the bankruptcy case asked Judge Gregg to consider whether negotiations among the union, United Steel Workers Local 2-682 and Checker Motors could resume and reach concessions or if a mediator should be brought in, according to court documents.

In May Checker was given permission to enter into agreements with General Motors Corp. that were intended to help the bankrupt supplier stay afloat until it could negotiate the sale of itself to a new owner.

On June 9, 2009, Judge Gregg approved the sale of Checker Motors Corp. to the subsidiaries of two Canadian automotive suppliers, Narmco Group LLC and Van-Rob Inc.

The Narmco Group, based in Windsor, Ontario, paid $650,000 for Checker's business of making stamped metal and welded assemblies for GM trucks and other vehicles.

In its early years Markin not only produced the vehicles but also ran Checker Taxi, a taxicab operator in Chicago that was in direct competition with the Yellow Cab Company, owned by John D. Hertz.

An exception to this rule was the Checker Aerobus,[25] an extended version of its cars, built on a stretched wheelbase allowing for each row of seats to have its own doors.

It was the third offering in the evolution of the 1928 Model K and quite striking in appearance, with many style cues reminiscent of its new corporate cousin, the Auburn, albeit an industrial version.

Cord continued his method of marketing through up-to-date style and a sense of luxury, adding chrome trim, flared fenders, padded tops and vacuum-powered sunroofs.

Other features included a multi-position adjustable driver seat and glass windows in the roof that passengers would love when sightseeing in major cities.

Early artists’ renditions of the Model A depict an integrated streamline design from fore to aft, but the production car sports a unique, even gothic front clip.

It's unclear why the major change in the front end styling was made to the production vehicle, but it has been said that the “sugar scoop” fenders, inherited in part from the preceding Model Y, were purpose built to provide safety from tire damage in minor city traffic accidents.

At the time, other taxis with streamlined fenders ran the risk of having a tyre pierced in a minor accident, whereas the Model A had a higher probability of driving away.

Designated the Model C, it utilized a L-head Continental 6 placed transversely in the rear of the cab, mated to a Warner three speed manual transmission.

Plans called for a significant number of variations to be produced, including sedans, limos, station wagons, coupes, convertibles, and light trucks.

According to Snow, quoted in Special Interest Auto Magazine in 1973, "The passengers commented on the excellent ride qualities and the drivers claimed it was easy to keep on the road, handled well in traffic and on the highway."

[44] When New York City limited the wheelbase of taxis to 120 inches, Checker was ready with a brand-new body that would form the basic styling until the end of production in 1982.

The body was designed to simplify maintenance, as exterior panels were fastened by bolts and could be replaced without special tools or welding; the front and rear bumpers were interchangeable.

Rather than allow Checker drivers to begin buying different brands of cars, Markin began selling licenses in New York City.

[54] The largest collection of restored Checker Cabs is held at the National Auto & Truck Museum in Auburn, Indiana,[55] which acquired six cars as a donation in 2012.

Civilian models were as utilitarian as their fleet counterparts, sporting a simple, flat dashboard with round gauges (this would remain unchanged up to the final Checkers in 1982), rubber mats instead of carpeting and hardboard ceilings.

[20]: 144–145  This decline was due to a number of factors: With the Marathon outmoded and not selling in viable quantities, and with no resources to develop a new model, Checker decided to leave the auto manufacturing business.

The US went through two energy crises in 1973 and 1979, adding motivation for Checker to consider developing a modern fuel efficient taxi that would allow the company to produce cars into the next century.

With Cole as President of Checker's taxicab operating company, they planned to purchase partially completed Volkswagen Rabbit's from VW's new Westmoreland Assembly Plant in Pennsylvania.

After shipping the Volkswagens to the Checker Motors factory in Kalamazoo, they would cut them in half and insert a section to lengthen the car, as well as raising the roof and then sell the modified vehicles as taxis.

In November 1981, Sab Hori describes more details of the new Checker for automotive writer John Melrose: "We're going to try and do everything we can to make the cab easy to service ... We'll have bolt-on fenders, possibly of plastic, and we’re considering bolt-on door panels made from either RIM (reinforced injection molding) or SMC (sheet molding compound) plastic because if a panel is damaged it would be easier to replace.