Prime Minister Mark Carney announced that Canada will spend C$2 billion (equivalent to $1.4 billion US) across four years to build 190 armored combat support vehicles in Ontario's London area.
Federal officials confirmed a strategic partnership with the Canadian arm of General Dynamics, a subsidiary of the U.S. defense firm, to produce the 190 vehicles at its London, Ontario facility. This agreement increases Canada's total fleet to 550 vehicles, with the new units intended for training at military bases nationwide.
"This partnership will create or sustain more than 6,000 high-paying jobs across Canada every year over the next eight years," stated the government in an official announcement.
The London facility has been a cornerstone of Canadian armored vehicle production, previously building the Light Armored Vehicle (LAV) family. These vehicles are crucial for combat engineers, recovery operations, and logistics support, filling gaps in the current fleet that have been highlighted in recent military exercises.
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The London plant's decades of experience with the LAV family mean the workforce is already skilled in advanced manufacturing, which reduces startup costs and accelerates production timelines for the new vehicles. This expertise also ensures quality control and the ability to incorporate upgrades as threats evolve.
The defense industrial strategy, unveiled earlier this year, aims to foster homegrown champions that can supply both domestic and export markets. By designating General Dynamics as a strategic partner, the government is signaling a shift toward closer, longer-term relationships with key suppliers.
The economic impact extends beyond direct jobs. The contract will support a network of small and medium enterprises across Canada that supply components, from electronics to armor plating. Local suppliers in Ontario, Quebec, and the Prairies are expected to benefit. The government estimates that for every direct job at General Dynamics, several more are sustained in the supply chain.
The new vehicles are designed to assist combat engineers in breaching obstacles, recovering damaged equipment, and transporting essential supplies. Recent military exercises underscored the need for these capabilities, and the additional 190 units will significantly strengthen the Army's support fleet.
This contract represents a significant milestone under the newly unveiled defense industrial strategy, which aims to foster long-term relationships with key domestic suppliers. By designating General Dynamics as a strategic partner, Canada ensures a stable supply chain and technological expertise for decades to come. The investment also strengthens the industrial base in London, Ontario, which has been a critical hub for armored vehicle production since the LAV program.
Since the 1990s, the London plant has produced thousands of Light Armored Vehicles for the Canadian Army and allied nations. This extensive experience not only ensures high-quality manufacturing but also positions Canada as a key player in global armored vehicle production. The new contract reinforces London's status as a strategic hub for defense manufacturing.
As Canada faces evolving security threats, modernizing military equipment is a priority. The Army has been using a mix of older vehicles, and this program brings much-needed upgrades. The new vehicles will also enhance Canada's ability to contribute to NATO operations and peacekeeping missions. With a total fleet of 550 combat support vehicles, the military will have greater flexibility and deployment capability.
The company has committed to investing in its London operations, including new assembly lines and training facilities. This partnership is expected to last decades, ensuring a steady pipeline of work for Canadian workers.
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