Canada is expanding its armored vehicle fleet through a new contract to procure 190 additional combat support vehicles over the next four years. The agreement, valued at nearly $2 billion Canadian dollars (about $1.4 billion USD), was awarded to General Dynamics Land Systems-Canada, headquartered in London, Ontario. Canadian Prime Minister Mark Carney, who announced the deal on July 16, confirmed that the contract will also fund the construction of 35 additional armored combat support vehicles destined for Ukraine, adding to the 89 such vehicles Canada has already donated to Kyiv.
The new order will grow the Canadian Army’s wheeled light armored combat support vehicle fleet from 360 to 550 units. GDLS-Canada originally received the contract for the first 360 vehicles in August 2019, all of which have since been delivered. The armored combat support vehicles come in eight configurations, including ambulance, command post, troop and cargo transport variants. All are built on GDLS-Canada’s Light Armored Vehicle 6.0 platform, a design choice intended to streamline training and sustainment costs. These vehicles are currently in service with the Canadian-led NATO Multinational Brigade stationed in Latvia.
Carney also designated GDLS-Canada as the first strategic partner under his government’s newly established Defence Industrial Strategy framework, which prioritizes sourcing military equipment from Canadian-based companies. Speaking from the GDLS-Canada plant, Carney said the framework creates a pathway for domestic firms to collaborate more closely with the government on building sovereign capabilities spanning armored vehicles, drones and icebreakers. Under the framework, companies must commit to investing in Canadian research and development, hiring domestic workers and expanding local supply chains, in exchange for the government acting as an anchor customer that accelerates approvals and opens export opportunities.
Carney noted that vehicle construction at the GDLS-Canada facility already involves more than 600 Canadian suppliers. The strategy was developed in the aftermath of tariffs imposed on Canada by U.S. President Donald Trump in 2025, along with subsequent threats of further economic pressure. Carney has previously stated that Canada should not continue directing three-quarters of its defense capital spending toward American suppliers, while leaving open the possibility of working with U.S.-owned firms willing to make economic commitments within Canada.
GDLS-Canada vice president and general manager Dave Haggerty welcomed the agreement, stating that the company takes pride in supplying Canadian soldiers with advanced vehicle platforms while reinforcing the country’s defense industrial base and skilled workforce.
The expanded procurement underscores Canada’s dual objective of strengthening its own armored vehicle capacity while supporting Ukraine’s defense needs, all within a policy framework designed to reduce dependence on American defense suppliers.