Background
In 1937 the quickly deteriorating international situation urged the Dutch government to speed up its 1936 modernisation programme for the Dutch armed forces. In view of the limited budget available for armoured vehicles, Chief of Staff Lieutenant-General Izaak H. Reijnders decided that most funds should be dedicated to the acquisition of tanks. Therefore the existing number of twelve Swedish Landsverk 181 (named M36 in Dutch service) armoured cars, equipping a single squadron, should only be expanded with a dozen more for a second squadron, two additional vehicles to function as command cars for each squadron, twelve vehicles to provide a platoon of three for the reconnaissance unit, a motorised cavalry Hussar regiment, of each of the four infantry corps and finally ten vehicles to be used as matériel reserve and for training: 36 new armoured cars in total.
Fourteen Landsverk 180 (M38) vehicles were received between 16 March and 11 November 1938 to equip the second squadron and as command cars; however the Dutch in 1937 also tried to reduce their dependency on foreign manufacturers — especially Sweden, the armour industry of which country was known to have close ties with Germany — by employing their own small truck industry, the DAF company.
The army had in 1935 first suggested to DAF to produce some British type under licence. Although officially the Netherlands adhered to a policy of the strictest neutrality, it was hoped that by secret negotiations it could be arranged that the British would send an expeditionary force in case of a German attack and that some communality of equipment would facilitate such future cooperation. Also the army considered British armoured cars to be the best available. However it transpired that DAF had already developed an indigenous design, which it claimed to be more advanced then any British armoured car.
Read more about this topic: M39 Pantserwagen
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