Although Squats have not always been supported  as a viable 40K race, it's not too hard to make your own. This Guild Leader is a converted Warhammer Quest Dwarf miniature. By adding a bolt pistol and a gritty paint job, any dwarf can become a Squat! I use a blue and yellow color scheme for my Squats, with lots of browns for gloves, boots, belts, etc.
My Ancestor lord is a converted Blood Bowl squat. I liked the face mask on the blood bowl blockers. The staff is topped by a head from another plastic dwarf model. Shields somehow seem appropriate for Squats, and if you really want it to be useful, try statting it as a storm shield! I used a lot of gold on this model to emphasize his importance. The blood bowl decal sheet has nice winged hammer icons on it that work well for a stronghold symbol.
To fill out your squads quickly, I recommend converting plastic dwarf models. This is a typical plastic model, with axe removed and replaced by a bolter. I added a shoulder pad (from the OLD plastic orks), and stuck a small axe on his back for good measure.
Berzerkers are a great concept for Squats- with the ability to charge, they make up for the Squat's typical lack of speed. I armed this slayer with tech weapons (power axe and chainsword), and he looks quite dangerous! Although I used a Blood Bowl slayer, any slayer model should make a nice conversion.
For the most part, the old Squat models just don't appeal to me. The Engineers are the exception- here's a stock model I painted up to match my other Squats. The high tech look seems appropriate on an engineer.
Squats love heavy weapons. I made sure to show this by equipping several models appropriately. This is a blood bowl dwarf with an old Space Marine missile launcher added on. To make up for their low speed, I let heavy weapon squats move and fire with no penalties!
 Here's another Heavy Weapon squat, this time equipped with a Conversion Beamer. Somebody has to be able to take these things, and the Squats seem the obvious choice! The blood bowl dwarfs make nice models for 40K since they already have shoulder pads and other nice details. The hard part is getting them to hold weapons...

 Yes, it's a Squat Trike! Although there were once plenty of old style Squat Bike and Trike miniatures, I wanted a more "updated" version for my Army. I started with a Gorka Morka Trak. I removed the traks, shortened the back half, added larger wheels, and replaced the shoota with a multimelta from a landspeeder. I filed out a gap between the rider's legs to get him to fit, and replaced the normal handlebars with "chopper" style ones (which make it easier for the driver to reach them too). I added extra tail pipes in back, a Squat shield in front, and a nice round platform on back, large enough to support a round base so I could put any model on the back that I wanted. Using the blue and yellow colors, I tried to give the vehicle a somewhat Celtic look often seen on the epic scale Squat vehicles.

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