The final Marder III variant was based on the Panzer 38(t) Ausf. M (M standing for Mittelmotor: middle engine). It was armed with the 75 mm PaK 40 antitank gun. In this variant, the engine was moved from the rear to the centre of the vehicle between the driver and the rest of the crew. Thanks to that the fighting compartment could be lowered down onto floor level where the engine used to be. This decreased crew exposure, as well as visibility but ultimately increased protection. Unlike the previous two Marder Ills, the fighting compartment was closed at the rear protecting the crew although it stayed open-topped. In the previous two models, the commander served as a gunner. However in this version the radio operator was moved to the rear with the commander and gunner, serving as a loader increasing combat effectiveness. The Ausf. M was the variant produced in the largest numbers of all the tank hunters based on the 38(t) chassis.
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