The Terrier (4 × 4) Light Armoured Unit (LAU) was jointly developed by Krauss-Maffei Wegmann of Germany and the Defence Vehicles Division of IVECO of Italy.

It is a further development of the Italian Boneschi MAV 5 (4 × 4) light armoured vehicle of which 200 units were supplied to the Italian Army with an additional 12 being supplied to the Italian Carabinieri. Full details of this 4 × 4 vehicle, which is no longer marketed, are given in a separate entry. Large numbers of MAV 5 vehicles remain in service in Italy.

The first customer for the Terrier LAU was the United Arab Emirates, which took delivery of 10 vehicles in 2000 for use in the police role. Single examples of the Terrier LAU have been supplied to Egypt and Poland.

Krauss-Maffei Wegmann and IVECO have now ceased all marketing of the Light Armoured Unit (LAU).

The Terrier LAU essentially consists of a standard production IVECO 40.12WM (4 × 4) truck chassis that uses a proven commercial diesel power pack fitted with a new armoured steel body. Over 15,000 of the standard unarmoured trucks are used by a number of different armies in various parts of the world.

The all-welded steel armoured body provides the occupants with protection from 7.62 × 51 mm NATO small arms fire, with the floor providing protection from anti-personnel mines. When compared to the earlier MAV 5, the Terrier LAU has much improved protection under the hull and around the doors.

The diesel power pack is at the front of the vehicle with the driver being seated on the left and the commander on the right. There is a large one-piece bulletproof window to their front and a smaller bulletproof window in either side of the hull. Under this window is a circular firing port. To the immediate front of the vehicle commander is a circular firing port. Mounted on the forward part of the roof is a searchlight that can be operated from within the vehicle.

In either side of the hull between the front and rear axles is a forward opening side door with a bulletproof window in its upper part. There is another door in the rear side of the hull slightly offset to the right. This has a bulletproof window in its upper part with a firing port below. A replacement wheel and tyre is carried at the rear of the hull on the left side. There are an additional two bulletproof windows in either side of the rear roof compartment.

The standard Terrier LAU has a circular roof hatch on which a 7.62 mm machine gun or similar weapon can be installed. Other weapon options are also possible including a one-person turret armed with 7.62 mm machine gun.

The seating arrangement is flexible but a typical Terrier LAU would have the commander and driver at the front and another six seated at the rear. Four would be to the immediate rear on individual seats facing the front and enter and leave the vehicle via the side doors. The remaining two would be seated at the very rear, one either side facing each other, and enter and leave via the rear door.

For added protection the diesel fuel tanks and batteries are under armour protection, a fire suppression system is provided for the tyres and engine and run-flat tyres are fitted as standard.

To reduce hull vibration, special elastic pads have been fitted between the hull and chassis. Power steering and an air conditioning system are fitted as standard. Various optional equipment is available including roof-mounted blue flashing lights.

As well as being used as a troop carrier other roles suggested for the Terrier LAU include command post, explosive ordnance disposal unit, ambulance and transport vehicle for high-value goods.

The Polish company of Wojskowe Zaklady Mechaniczne Siemianowice Slaskie has a licence to market and manufacture this vehicle for the Polish market. The Terrier LAU has been demonstrated in Poland but as of late 2007 no production orders are known to have been placed by Poland.