[5][6] In 1973 the Royal Netherlands Army started a project to look for a new infantry fighting vehicle to replace the AMX-VCI.
[8] In 1974 the Royal Netherlands Army started to show interest in the improved M113, later named Armored Infantry Fighting Vehicle (AIFV), which was developed by the FMC Corporation.
[8] The division of labour was that FMC built the chassis of the vehicle, while DAF was responsible for the interior and constructed the 227 specially designed turrets that were equipped with a 25 mm Oerlikon KBA-B02 cannon.
[15] The additional cost of equipping the 116 vehicles with turrets that can launch TOW missiles was estimated at 55 million Dutch guilders.
[16] In 1980 the Dutch Ministry of Defence was also looking at four different vehicles that could replace the 743 YP-408s of the Royal Netherlands Army, which included the Marder, TPZ-1, YPR-765 and XM-2.
[20] FMC Corporation had offered to build the vehicles for a lower price than the DAF-RSV consortium, but the Dutch government wanted to stimulate employment in the Netherlands.
[21] Dutch variants:[22] (the Pantser Rups designation means armoured tracked) More than 100 YPR-765s of the Royal Netherlands Army were active in Bosnia and Herzegovina as part of the Dutch troops that participated in the Stabilisation Force in Bosnia and Herzegovina.