To achieve AAR's dual aims of winning in both Formula One and Champ Car formulae, AAR hired ex-Lotus designer Len Terry to work for the American outfit. His brief was to create a chassis that could be used both for the twisting road course circuits of the F1 series, as well as the broad ovals of the North American series. Terry was ideally placed to be able to fulfill such a brief, having just completed the 1965 Indianapolis 500-winning Lotus 38 for Colin Chapman's team.