During 1973, negotiations began between the United States and Germany to standardize certain components of both nations main battle tanks of the eighties. As a result of this, by 1976 it was agreed to study how Leopard 2 could be modified to meet US performance and constraints. Based on the altered German and US military demands, Porsche, Krauss-Maffei, and Wegmann designed and built the Leopard 2 AV (Austere Version).
Modifications included the new multi-layered (much like the British developed "Chobham" armor, which consisted of layers of steel and ceramics) armor on the hull and a new turret with a less sophisticated fire control system. Two chassis and three turrets were built, and were ready in 1976. The first prototype had a turret with a Hughes fire control system and a L7A3 105 mm main gun. The second one was equipped with the same gun, but provisions were made to allow a quick adoption of the Rheinmetall 120 mm smooth bore main gun. The third turret had a German fire control system, including the EMES 13, and was to be used in the German test program. An additional turret was built and was identical as the third, but had the Rheinmetall 120 mm smooth bore main gun installed from the beginning.