Canada Invests $1.4 Billion in Local Production of Armored Vehicles: Boosting Defense and Economy

VICTORIA, British Columbia — Canada has announced a significant enhancement to its military capabilities by confirming a new deal to purchase 190 combat support vehicles within the next four years.

This nearly $2 billion CAN (approximately US$1.4 billion) agreement has been secured with General Dynamics Land Systems-Canada, which is headquartered in London, Ontario. Additionally, the contract includes the construction of 35 armored vehicles specifically for Ukraine, as disclosed by Canadian Prime Minister Mark Carney during the announcement on July 16.

Previously, Canada had donated 89 similar vehicles to Ukraine.

With this acquisition, the total count of wheeled light armored vehicles in the Canadian Army will rise from 360 to 550 units.

The initial contract for the first 360 armored vehicles was awarded to GDLS-Canada back in August 2019, and those vehicles have since been delivered.

The armored combat support vehicles (ACSVs) are available in eight different models, including variants such as ambulance, command post, troop/cargo, electronic warfare, maintenance and recovery, mobile repair team, fitter/cargo, and engineer. These models are all built on the GDLS-Canada’s Light Armored Vehicle 6.0 platform, which aims to lower training and maintenance expenses. ACSVs are currently being utilized by the Canadian-led NATO Multinational Brigade in Latvia.

In his announcement, Carney also highlighted that GDLS-Canada has been chosen as the inaugural strategic partner under the new Defence Industrial Strategy’s framework initiated by his government. This strategic policy focuses on procuring defense materials from Canadian-based companies.

“This framework is designed to forge stronger ties with Canadian entities like GDLS-Canada, enabling them to more effectively collaborate with our government in building the essential sovereign capabilities needed by our armed forces, which include armored vehicles, drones, icebreakers, and other vital equipment,” Carney explained during a broadcasted press conference at the GDLS-C facility.

The framework mandates that participating companies invest in Canadian research and development, hire locally, and enhance their domestic supply chains. “In exchange, the federal government will provide robust support by speeding up approvals and facilitating entry into new export markets,” Carney stated. He emphasized the reciprocal nature of the commitment: “When Canadian firms build for Canada, the nation will build alongside them.”

According to Carney, the production of armored vehicles at GDLS-Canada involves collaboration with over 600 Canadian suppliers.

The defense industrial strategy was launched following punitive tariffs and economic threats imposed by U.S. President Donald Trump in 2025, who suggested that Canada could avoid these measures by becoming a 51st state.

Carney remarked that these developments necessitated a decrease in Canada’s reliance on U.S.-manufactured military equipment. On June 9, 2025, he voiced a need to shift away from directing the majority of Canada’s defense capital spending towards the U.S.

He also kept the possibility open for cooperation with U.S.-owned companies, like GDLS-Canada, provided they commit economically to Canada.

Dave Haggerty, the vice president and general manager of GDLS-Canada, expressed enthusiasm about the strategic partnership with the Canadian government. “We are proud to support the Canadian military with cutting-edge combat vehicle platforms and services, while simultaneously bolstering Canada’s sovereign capabilities, defense industry, and skilled labor force,” Haggerty stated.