In 1929 bacteriologist Arthur G. Sherman's family vacation was not enhanced by their leaking tent trailer. Sherman designed and built an improved model. Inspired by the results, he formed the Covered Wagon Company and exhibited at the 1930 Detroit Auto Show.
By the mid 1930s the company moved to larger facilities in Mount Clemens, Michigan. With over 500 workers, it was the city's largest employer.
According to a 1937 TIME magazine article, total volume for all trailer manufacturers in 1935 was estimated at 35,000 units. The Covered Wagon Company produced 6,000 or 17% of those trailers, making it one of the largest trailer makers in the country.
Truck cargo bodies replaced trailers during WWII. Afterwards, the Covered Wagon Company turned to other products, never returning to trailers.