Started in 2004, introduction of the "Gaucho", a Light Strike Vehicle (LSV) for the Argentine and Brazilian armies occurred on 25 April 2006. The vehicle has characteristics similar to LSVs used by US and UK units during the Gulf War in 1991: and will complete reconnaissance, air assault, command and control, transport and evacuation missions. Air transportable the Gaucho was constructed with parts available in Brazil and Argentina, allowing for reduced development time and production costs. The diesel-powered prototype has a frame of tubular construction with built in roll cage, and selective 4x4 or 4x2 drive. While the independent suspension allows movement on varied surfaces.

Argentina was responsible for the design and construction of the chassis, engine mounts, transmission, steering and suspension. After the first evaluation, in June of 2005 the vehicle was flown to Rio de Janeiro, there the Brazilian military engineering department developed and installed the brake system, engine, transmission and transfer case, as well as the cooling system, electrical system, fuel, armament and accessories.

Two prototypes have been completed, with frill production for Argentina and Brazil to start in 2006.