Checker Motors Corporation is a
Kalamazoo, MichiganKalamazoo is the largest city in the southwest region of the U.S. state of Michigan. It is the county seat of Kalamazoo County. As of the 2000 census, the city had a total population of 76,145...
based automotive subcontractor that was once the manufacturer of the famed
Checker automobile, the iconic American
taxiA taxicab, also taxi or cab, is a type of vehicle for hire, with a driver, for a single passenger, or small group of passengers, typically for a non-shared ride. A taxicab conveys passengers between locations of their choice...
cab. Checker was established by
Morris MarkinMorris Markin was a Russian-born American entrepreneur and businessperson who founded the Checker Cab Manufacturing Company .-Early years:...
in 1922 through a merger of Commonwealth Motors and Markin Automobile Body. On January 16, 2009, the company filed for
Chapter 11 protection in U.S. Bankruptcy CourtChapter 11 is a chapter of the United States Bankruptcy Code, which permits reorganization under the bankruptcy laws of the United States. Chapter 11 bankruptcy is available to every business, whether organized as a corporation or sole proprietorship, and to individuals, although it is most...
.
History
Morris Markin, a clothier from Chicago, Illinois, became the owner of a
Joliet, IllinoisJoliet is a city in Will County and Kendall County in the U.S. state of Illinois, located southwest of Chicago. It is the county seat of Will County. As of the 2000 census, the city had a total population of 106,221. Its estimated population in 2008 was 146,125. It continues to be Illinois'...
, auto-body manufacturer when its owner defaulted on a $15,000 personal loan from Markin. The facility made bodies for Commonwealth Motors who marketed the vehicles to cab companies under the trade name Mogul. The former company was Lomberg Auto Body Mfg. Co.
Concurrently, Checker Taxi — a privately-owned cab company in Chicago that had no affiliation with Markin — placed a large order for Mogul cabs with Commonwealth. Commonwealth itself was on the verge of bankruptcy, so Markin merged the two companies in order to honor the contractual commitment with the Chicago Checker Taxi. Markin named his concern the Checker Cab Company. However, there was no overlap in ownership.
John HertzJohn Daniel Hertz was an American businessman, thoroughbred racehorse owner, and philanthropist.-Biography:...
began in the taxi business in 1910, both building Yellow Cabs and operating the
liveryA livery is a uniform or other insignia or symbol worn in a non-military context on a person or object to denote a relationship with a person or corporate body, often by using elements of the heraldry relating to that person or body, or a personal emblem, and normally given by them. It derives...
service. Because of plant overproduction, Hertz used the excess cars by renting them to patrons through his "Yellow Drive-Ur-Self" division (the forerunner of
Hertz Rental CarThe Hertz Corporation is the world's largest general-use car rental brand in the world, with approximately 3,500 locations in the United States and 7,500 worldwide....
). Seeing Hertz's success, Markin began buying up Checker's stock in 1924, gaining full control of Checker Taxi Cab in 1937.
Markin also followed Hertz's business plan in having drivers open doors for the fares, and outfitted each driver with a uniform. Competition for fares was fierce in the 1920s, and the easily spotted drivers began ganging up on one another between fares. The fighting between the two cab companies escalated to the point where Markin's home was
firebombFirebomb may refer to:* Firebombing* Incendiary device* Molotov cocktail* A season 2 episode of the television show Alias...
ed. This prompted Markin to buy the
Dort AutomobileThe Dort was an automobile built by the Dort Motor Car Company of Flint, Michigan from 1915 - 1924. Dort used Lycoming built engines to power their vehicles....
factory in Kalamazoo, Michigan, and relocate Checker.
Under Markin, Checker became the first cab company to hire African-American drivers and the first to require that drivers pick up all fares, not just white ones.
Hertz had sold his Yellow Cab to the Parmalee Transportation Company, but in 1929, after a suspicious fire at his stables killed his prized race horses, Hertz left the cab business, with Markin buying Hertz's shares and then acquiring another one-third in the company from Parmalee, thus taking control of both Parmalee and Yellow Cab.
While Hertz had sold off the cab business, the manufacturing arm went to General Motors, which wanted to sell it and made Markin an affordable offer. Markin refused. Rather than eliminate the capacity of Yellow Manufacturing, General Motors entered the taxicab business as Terminal Taxi Cab, and a second fare war broke out, with Checker and Terminal fighting it out in
New York CityNew York is the most populous city in the United States, and the center of the New York metropolitan area, which is among the most populous urban areas in the world. A leading global city, New York exerts a powerful influence over worldwide commerce, finance, culture, fashion and entertainment...
. To end this dispute, New York Mayor
Jimmy WalkerJames John Walker, often known as Jimmy Walker and colloquially as Beau James , was the mayor of New York City during the Jazz Age.-Life and career:Walker was the son of Irish-born William H...
created the New York Taxi Cab Commission, which ruled that all cabs in New York had to be purpose-built cabs, not consumer car conversions.
Markin sold Checker Cab to E.L. Cord of
Cord AutomobileCord was the brand name of a United States automobile, manufactured by the Auburn Automobile Company from 1929 through 1932 and again in 1936 and 1937....
fame, but bought it back again in 1936. In 1940, Parmalee (including Yellow and Checker Cab) became the largest cab company in the United States. Eventually, the cab company revenues exceeded those of Checker's automotive building division, and the company decided to enter the consumer passenger car business in 1958. Consumer autos were phased in regionally across the US in 1959 starting in New York and
New EnglandNew England is a region of the United States. It is located at the northeastern corner of the US, bordered by the Atlantic Ocean, Canada and the state of New York, consisting of the modern U.S...
. Nationally, introduction of the Checker Superba took place at the
Chicago Auto ShowThe Chicago Auto Show is held annually in February at Chicago's McCormick Placeconvention complex. At , with over 1,000 vehicles on display, it is the largest auto show in North America and the third largest in the world .The event, first produced in 1901, has been staged more times than any other...
on February 8, 1960. The dealer network continued to grow throughout the early 1960s.
In addition to automobile production, Checker played a significant role as a third-party automotive supplier of OEM body stampings. In the late 1930s Checker produced truck bodies for Hudson in addition to manufacturing complete Ford truck cabs. Checker also produced truck bodies for
REO Motor Car CompanyThe REO Motor Car Company was a Lansing, Michigan based company that produced automobiles and trucks from 1905 to 1975. At one point the company also manufactured buses on its truck platforms.REO was initiated by Ransom E. Olds during August 1904...
.
In 1964 the state of New York pursued Markin and Checker on antitrust charges, alleging that it controlled both the taxi service and manufacture of taxis, and thus favored itself in fulfilling orders. Rather than allow Checker drivers to begin buying different brands of cars, Markin began selling licenses in New York City.
1970s
In 1977, seven years after the death of Morris Markin, retired GM President
Ed ColeEdward Nicholas Cole was an automotive executive for General Motors. He is the father of David E. Cole, Center for Automotive Research, Chairman.Cole was the son of a dairy farmer...
bought into Checker with the intent of re-energizing the company and developing a new, more modern Checker. Cole's plan was to purchase partially completed
VolkswagenThe Volkswagen Aktiengesellschaft , also known as Volkswagen Group or as VW, is an automobile manufacturer and mobility organisation based in Wolfsburg, Lower Saxony, Germany and is the pioneer brand within the Volkswagen Group, which contains the car brands Audi AG, Bentley Motors Ltd.,...
s from VW's new factory in
WestmorelandWestmoreland County is a county located in the U.S. state of Pennsylvania. It was founded on February 26, 1773, and was the first county in the colony of Pennsylvania west of the Allegheny Mountains. Westmoreland County originally included the present-day counties of Fayette, Washington, ...
,
PennsylvaniaThe Commonwealth of Pennsylvania , often colloquially referred to as PA by natives and Northeasterners, is a state located in the Northeastern and Middle Atlantic regions of the United States...
. Cole was going to ship the VWs to the Checker Motors factory in Kalamazoo, cut them in half, insert a section to lengthen the VW, raise the roof and then sell the reconfigured vehicle as a taxi. Shortly thereafter, however, Cole was killed when his plane crashed near Kalamazoo.
1980s
In 1989, Checker Motors and Checker Holding Company were involved in a reverse acquisition with International Controls (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 (taxi-cab 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 as Great Dane Limited Partnership, and was acquired by Chicago based CC Industries.
Purchased in August 1989,Checker sold South Charsleston Stamping 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 70's.
Checker Motors operated as a subsidiary of CC Industries as an automotive
subcontractorA subcontractor is an individual or in many cases a business that signs a contract to perform part or all of the obligations of another's contract....
, 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.
2000s
In 2008, due to the Late-2000s recession and high
gasolineGasoline or petrol is a petroleum-derived liquid mixture, primarily used as fuel in internal combustion engines...
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 percent. During the summer of 2008, Checker employed about 340 workers.
At the same time that the U.S. economy was in full recession, Checker Motors CEO, David Markin unfortunately fell victim to Bernie Madoff. David Markin's name appears five times on the official list of Madoff victims. One address on the list was 2016 North Pitcher Street, Kalamazoo, the same address as Checker Motors Corp.
On January 16, 2009, the 87-year-old Kalamazoo company filed in U.S. Bankruptcy Court in Grand Rapids, Michigan. Escalating raw material prices and dwindling sales for their customers' products were cited as the main reasons for the filing, but another reason was labor costs. It was reported that a deal with unionized labor could not be reached after a year of negotiations.
At the time of the bankruptcy, Checker's customer base included General Motors, Chrysler LLC,
Ford Motor CompanyThe Ford Motor Company is an American multinational corporation based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford, Lincoln, and Mercury brands, Ford also owns Volvo Cars of Sweden, and a small stake...
,
Navistar InternationalNavistar International Corporation is a manufacturer of International brand commercial trucks, MaxxForce brand diesel engines, IC Corporation brand school buses, Workhorse brand chassis for motor homes and step vans, and is a private label designer and manufacturer of diesel engines for the...
and GM Shanghai. Checker was the eighth largest American auto supplier to go bankrupt in recent years. GM and Chrysler followed Checker's bankruptcy just several months later.
In February, Checker asked the U.S. Bankruptcy Court for Western Michigan to reject its contract with 125 union workers and eliminate health care and pension benefits for 176 union retirees. On February 27, 2009, the judge in Checker Motors Corp.'s bankruptcy case threw out the company's request to eliminate its labor agreement. Bankruptcy Judge James D. Gregg agreed with United Steelworkers Union Local 2-682 attorneys, that the company had not treated all parties involved in the proceeding fairly when it awarded four top executives a total of $275,000 in retention bonuses prior to filing for bankruptcy.
In Late March 2009, a committee of unsecured creditors in the bankruptcy case asked U.S. Bankruptcy Court Judge James D. Gregg to consider whether negotiations between the union, United Steel Workers Local 2-682, and Checker Motors can resume and reach concessions, or if a mediator should be brought in, according to court documents.
On April 4, 2009 Checker notified its more than 270 employees that CMC would close its business by the end of June.
In a bankruptcy court hearing Monday, April 6, 2009, CMC and labor union representatives said they intended to continue trying to negotiate a new union contract that would allow Checker Motors to survive.
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.
In Late May, Checker announced that they found a potential buyer, The Narmco Group.
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
Windsor, OntarioWindsor is the southernmost major city in Canada and lies in Southwestern Ontario at the western end of the heavily populated Quebec City-Windsor Corridor. It is within Essex County, although administratively separated from the county government. Windsor is located south of Detroit, is separated...
, paid $650,000 for Checker's business of making stamped metal and welded assemblies for GM trucks and other vehicles. Van-Rob Inc., based in Aurora, Ontario, paid $950,000 for some of Checker's manufacturing equipment.
Christopher Grosman, an attorney representing Checker Motors, told Judge Gregg that the offers from Narmco and Van-Rob represented the ``highest and best value to Checker's creditors. Grosman said much of the company's machinery could not be sold because, in the wake of downsizing throughout the automotive industry, the market has been flooded with similar equipment.
The $1.6 million sale meant the end of the road for Checker. Approximately 125 Checker workers in Kalamazoo made parts until June 30, then the business was transferred to Canada.
At about the same time as Checker's closing, the notorious Ponzi scammer who committed the largest fraud in the US history at $65 billion, Bernie Madoff, started his 150 year prison sentence.
In July 2009, General Motors Corp paid $1.5 million dollars to Walker Tool & Dies for tools and dies that still remained on site at Checker. Walker Tool had liens on the tools, so payment was required in order to move the tools to Canada. The tooling was transferred to Canada to make the Buick Lacrosse.
Commercial vehicles
Checker is best known for its
taxicabA taxicab, also taxi or cab, is a type of vehicle for hire, with a driver, for a single passenger, or small group of passengers, typically for a non-shared ride. A taxicab conveys passengers between locations of their choice...
, on which it built its business and reputation. In its early years, Markin not only produced the vehicles but also ran
Checker Cab, a taxi company which was in direct competition with
John D. HertzJohn Daniel Hertz was an American businessman, thoroughbred racehorse owner, and philanthropist.-Biography:...
, owner of the
Yellow CabThe original Yellow Cab Company based in Chicago, Illinois is one of the largest taxicab companies. Independent companies using that name operate in many cities in a number of countries. Many firms operate with drivers as independent contractors...
of taxicabs.
During the 1930s, Checker also built trailers for Sears-Roebuck and truck cabs for the
Ford Motor CompanyThe Ford Motor Company is an American multinational corporation based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford, Lincoln, and Mercury brands, Ford also owns Volvo Cars of Sweden, and a small stake...
. Checker also built four prototype jeeps that were tested by the U.S. Army. They were called the Bantam and featured four wheel drive and four wheel steering. During
World War IIWorld War II, or the Second World War , was a global military conflict which involved a majority of the world's nations, including all great powers, organized into two opposing military alliances: the Allies and the Axis...
Checker built tank retrieval trailers, tank recovery vehicles, as well as semi, petroleum and other types of trailers.
Checker designs changed infrequently; Markin held on to certain design features long after they were discontinued by major automobile manufacturers. For example, open front fenders were retained by Markin into the 1940s because it saved operators the expense of repairing minor dings and dents. Taxicab models were designated by a letter series; significant modifications in models (new major systems, etc.) were designated by a number following the model letter.
Checker's commercial vehicles were also usually given letter designations instead of model names. An exception to this rule was the
Checker AerobusThe Checker Aerobus is a 6-door station wagon & 8-door station wagon/sedan manufactured by the Checker Motors Corporation from 1962-1981....
http://www.edcahoon.com/Aerobus.html, an extended version of its cars, built on a stretch wheelbase allowing for each row of seats to have its own doors. The Aerobus was often associated with airports and train stations, although vacation resorts also used Aerobuses for transporting guests.
Consumer vehicles
From 1922 until 1959 Checker's production vehicles were built almost exclusively for the commercial livery (taxi) business, although the company would build vehicles for personal use if requested. Checker entered the consumer vehicle market when it saw purchases of its Checker Taxis decline.
Beginning in 1960, Checker introduced the
SuperbaThe Checker Superba was an automobile produced by Checker Motors Company of Kalamazoo, Michigan, between 1961 and 1963. The Superba used the Checker taxi cab bodies and were produced in two trim lines, standard and Custom, both in two body styles, four-door sedan and a five-door station wagon.On...
, its first model specifically built for the consumer market. Joining the Superba in 1962 was the
MarathonThe Checker Marathon was an automobile produced by the Checker Motors Company of Kalamazoo, Michigan, between 1961 and 1982.Marathons were produced in both four-door sedan and four-door station wagon forms, and the rare eight-door "Aero Cab"....
, which took the place of the Superba Special.
Checker's cars were lightly marketed using campaigns that centered on their durability and unchanging style. Checker also promoted their vehicles as cars at a time when most US automakers shied away from mileage promises.
The Marathon and A11 design had its origins based on the 1956 Checker Model A8. The Model A8 was Checkers response to the new New York City taxi laws that mandated that Taxis could not run on a chassis wheelbase longer than 120 inches. Checker cars and taxicabs used the same basic body and chassis design until production ceased, there were numerous changes in the appearance of the cars throughout its production, especially in the later 1960s and 1970s. Starting in 1967, an energy-absorbing
Steering columnThe automotive steering column is a device intended primarily for connecting the steering wheel to the steering mechanism by transferring the driver's input torque from the steering wheel.A steering column may perform the following secondary functions:...
was fitted to meet safety regulations, similar in appearance to AMC's column. 1968 saw round side marker lights on each fender, amber in front, red in back. '69 cars got high-rise headrests, and 1970 models adapted the Government-required steering column and shift lever lock. 1974 Checkers eschewed the attractive, chrome-plated bumpers for girder-like, aluminum-painted units. '75s featured the
Catalytic converterA catalytic converter is a device used to reduce the toxicity of emissions from an internal combustion engine. First widely introduced on series-production automobiles in the U.S. market for the 1975 model year to comply with tightening EPA regulations on auto exhaust, catalytic converters are...
emissions device, which came with an "Unleaded Fuel Only" label for both gas gauge and fuel filler. During the 1970s, Checkers adopted a standard Chevrolet steering column assembly, including steering wheel (sans the "Chevrolet" badges), shift lever and ignition switch. 1978 and later models can be identified when Chevrolet switched to a "Delta Spoke" steering wheel design, duly used on Checkers. The rear fold-down jump seats were also removed as they failed all safety tests. The car had very poor gas mileage as the tall front end and engine compartment had been designed for a Continental 226 cubic inch inline 6, which required the large engine compartment.
In 1964 Checker no longer used engines produced by Continental. Continental had been losing money on each unit sold to Checker for several years, Checker was not interested in a price increase from Continental. Checker experimented with several engine options including the Chrysler 318. Eventually Checker went to a
Chevrolet straight sixThe Chevrolet inline 6 of the 1930s through 1970s was the base engine in many popular cars, including the Chevrolet Camaro.-1929 Stovebolt Era:...
. That engine, along with an optional
Chevrolet V-8The Chevrolet small-block engine is a series of automobile V8 engines built by the Chevrolet Division of General Motors using the same basic small engine block...
were used until the late 1970s. Engines and drivetrains matched the full-size Chevy models. During the 1970s, the Impala's Turbo-Hydramatic 400 transmission was fitted to all Checker sedans.
When GM ceased offering the straight six in its Impala models for 1979, Checker purchased a small V-6 that was also used in the big Chevys. But the large and tall grill and hood made for poor aerodynamics which was part of the reason for the low gas mileage. So a number of the V-6s were converted to use propane as the fuel. Many of the body stamping dies were worn out after over 20 years of continuous use, and that required manual body adjustments by body and fender mechanics to make the parts fit. The fenders and doors were the parts with the most problem fit, as taxis are involved in numerous minor accidents due to their extensive, often 24-hour-a-day use. With the Marathon thoroughly outmoded and no longer selling in viable quantities, and lacking the resources to develop a new model, Checker decided to leave the auto manufacturing business. The last models were produced for the 1982 model year, and the final automobile rolled off the assembly line on July 12, 1982, after members of the Markin family decided to end automobile production rather than meet labor demands.
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