[7][8] In 1974 the Canadian military launched an acquisition program to procure a light vehicle for the Army reserves.

Mowag partnered with General Motors Diesel to manufacture the AVGP at GM's plant in London, Ontario.

[9] The AVGP had propellers and trim vanes for amphibious use, like the eight-wheeled Bison, which was the vehicle family's immediate successor.

The Grizzly was used as an armoured personnel carrier in regular force infantry battalions not equipped with the M113 APC, and also by reserve units.

In 2020 the Windsor Police replaced their AVGP with the Ontario built Terradyne Armored Vehicles Gurkha based on the Ford F-550.

In June 2005, the Canadian government announced plans to loan 105 AVGPs (100 Grizzlys and 5 Huskys) to African peacekeepers in the Darfur region of Sudan.

According to Amnesty International, the soldiers who used the loaned vehicles served in Sudan for too short a term to be properly trained and become experienced.

[20][21] They were rebuilt without the turret by the Chilean MOWAG-Piranha builder FAMAE, as they will act as armoured personnel carriers for the UN deployment in the Republic of Congo (MONUC), and domestically.

[22] It was reported that FAMAE was contracted in 2011 to modernize the vehicles by installing new engines and gearboxes, as well as performing preventive maintenance.