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German and others also used a 6 cylinder engine in their Iltis - so they were not so outrageously underpowered, and we opted for a 4, which was abysmal for what we tried to do with them. Adding a Ground gear wasn't the answer, and while they lasted a lot longer than they should have been expected too - it wasn't the correct platform.Canada got into the Iltis as the Germans were getting rid of theirs for the Steyer G-Wagon, that should have been the vehicle we bought.
Steyr-Daimler-Puch wasn't the originator of the G-Wagon, they had a JV with Mercedes, called Galandefahrzeug-Gesselschaft that built the test models at the "urging" of the Shah of Iran (who was Mercedes largest shareholder at the time). Mercedes at the time was not into Military Vehicles and knew they needed assistance. Mercedes-Benz then brought them to the public of the 1979 Model year.
I don't think the G-Wagon then, or later was a good LUVW either - it was too big for a Jeep Role, and too small for the 5/4 type role.
FIAT/IVECO had a number of issues with that platform - the frame was a giant POS, and the layout wasn't ideal for a what was wanted either, which then in turn hampered the entire thing.IVECO which was the parent design enjoyed a much better reputation than our version and has a whole host of military truck models in various weight classes.
Western Star building them was another matter as well, but the design was not a good one for what was wanted as a Military Light Utility Truck.
The Chevy Z72 Colorado based ISV is decently light enough to fill the Jeep role - (getting rid of some of the excess roof rack system to reduce the profile). One could likely do the same with with a Ford Ranger sized vehicle - I'm partial to the GM/Chevy offering as it is MOTS - but...
One then simply needs to find the 5/4 Replacement.