In July 1946 the General Staff predicted that the vehicles in the future returning from the Indies would be completely worn out and concluded it would be preferable to replace the six types of armoured car in use as much as was possible with a single home-built type, especially in view of the Dutch balance of payment. DAF showed itself prepared to produce the DAF M39. In fact some material for new cars, purchased for the DAF M40 batch, was still present, among it armour sets for ten vehicles delivered by Ourgrée Malgray in July 1941. The Germans at that time supervised the fulfilment of existing Dutch defence contracts by the Ordnance Department ensuring they could benefit from them; it is uncertain whether they allowed the delivery to take place because the material could be used to repair existing M39s or because they initially intended to start production of the type in Eindhoven. In 1941 the Dutch industrial capacity was increasingly employed to assist the German war effort; in 1942 this would again change when growing losses on the Eastern Front induced the Nazi government to force all available Dutch manpower to work in Germany itself and the materials would remain unused at the DAF-factory. They could now be combined with parts taken from army dumps; the Dutch Army still considered the DAF M39 to be more modern in general than existing Allied types but it would nevertheless be necessary to upgrade the type with a new engine and a new turret equipped with a six-pounder (57 mm) gun to be able to defeat the Soviet T-34-85 at a short range.