It was created when United Scientific Holdings plc acquired the Alvis division of the nationalised vehicle manufacturer British Leyland in 1981.

In 1981 the then nationalised BL sold the Alvis business to United Scientific Holdings for £27 million.

In 2004, the board of Alvis approved a £309m takeover bid by the American defence company General Dynamics.

David Mulholland of Jane's Defence Weekly said "I don't believe BAE expects to make money from this deal," characterising the purchase as strategic rather than commercial.

In 2005, the acquisition of United Defense led to the creation of BAE Systems Land & Armaments.