The first generation of LAV was created by Mowag for the Armoured Vehicle General Purpose (AVGP) requirement of the Canadian Army.

[1] 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 London, Ontario plant.

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.

During the 1980s, the U.S. Marine Corps began looking for a light armored vehicle to give their divisions greater mobility.

[17] A USMC light-armored reconnaissance battalion includes 56 LAV-25s, 16 LAV-ATs, 12 LAV-Ls, 8 LAV-Ms, 4 LAV-Rs, 4 LAV-C2s, and an unknown number of LAV-MEWSS vehicles.

[19] The Bison differs from the baseline LAV-25 by raising the height of the roof, removing the turret ring, placing a commander's cupola behind the driver, and incorporating a rail mount system in the cargo/passenger compartment to quickly change mission specific equipment.

The upgrades include improved engine power, new torsion bars, fittings for add-on armour, air conditioning, and the VRS respirator system for NBC defence.

The turret is equipped with a laser rangefinder, but no ballistic computer; elevation and lead corrections are applied manually by the gunner using multi-stadia reticules in the day, thermal, and image intensification sights.

The Coyote is powered by a Detroit Diesel 6V53T engine developing 400 horsepower (300 kW), and can reach speeds of 100 kilometres per hour (62 mph) (on road).

[24] Since the introduction of the Coyote to the Canadian Armed Forces, the vehicle has served national interest domestically and abroad.

[25][26] It was developed from the LAV II and manufactured by General Motors Diesel(later GDLS-C) and is the primary mechanized infantry vehicle of the New Zealand Army.

By July 1991, the Canadian Armed Forces had identified the need to replace their aging fleet of 1960s and 1970s-era armoured personnel carriers.

As a result, Multi-Role Combat Vehicle (MRCV) project was launched by the sitting Conservative government.

In August 1995, General Motors Diesel (later renamed GM Defense, and subsequently purchased by GDLS of London, Ontario) was awarded the contract to produce the LAV III which would replace the Grizzly and a large portion of the M113s.

The LAV III is powered by a Caterpillar 3126 diesel engine developing 350 horsepower (260 kW) and can reach speeds above 100 kilometres per hour.

[29] The vehicle is fitted with 8x8 drive and also equipped with a central tire inflation system, which allows it to adjust to different terrain, including off-road.

[35] The majority of Canadian casualties in Afghanistan have occurred during a patrol aboard a LAV III;[36] the LAV III is the most commonly used Canadian armoured personnel carrier in theatre, and this represents a normal association between use and likelihood to encounter a mine or improvised explosive device.

[29] In 2009, a number of LAV III's were modified with a Nanuk remotely controlled weapon station (RCWS) to provide better protection and to increase the chances of survival of the crew against improvised explosive devices and anti-tank mine threats on the battlefield.

The LAV III is equipped with an LCD monitor directly connected to the vehicle's external cameras, providing real-time images of the battlefield for the passengers.

[29] The LAV III and related versions have been used in the following: The New Zealand armed forces purchased 105 NZLAV, of which 102 were standard vehicles and 3 were redesigned for recovery.

[40] In 2011, these three LAVs were moved to Bamyan to support the provincial reconstruction team there as they were no longer needed in Kabul due to reduced SAS numbers.

[44] In August 2019, GDLS-Canada received a four-year, $3 billion deal to build 360 armored combat support vehicle variants.