In a significant move to bolster its military capabilities, Canada is set to expand its armored fleet substantially over the next few years. This development comes as part of a broader strategy to enhance domestic defense production and reduce reliance on foreign military equipment suppliers.
The Canadian government has awarded a contract worth nearly $2 billion CAD (US$1.4 billion) to General Dynamics Land Systems-Canada (GDLS-Canada) for the acquisition of 190 combat support vehicles. In addition to these, Canada plans to finance the construction of 35 more vehicles for Ukraine, as announced by Canadian Prime Minister Mark Carney on July 16.
This new procurement will increase the Canadian Army’s fleet of wheeled light armored combat support vehicles from 360 to 550. Originally, GDLS-Canada was contracted in August 2019 to deliver the first batch of 360 vehicles, which have since been supplied to the Canadian military.
The combat support vehicles, known as ACSVs, are versatile, with eight different variants such as ambulance, command post, and electronic warfare, all based on the GDLS-Canada’s Light Armored Vehicle 6.0 platform. This standardization helps the army minimize costs related to training and sustainment. These vehicles are currently in use with the Canadian-led NATO Multinational Brigade stationed in Latvia.
In a strategic move, GDLS-Canada has been named the first strategic partner under Canada’s new Defence Industrial Strategy framework, which emphasizes the procurement of defense equipment from Canadian-based companies. Prime Minister Carney stated, “Through this framework, we’re creating a pathway for Canadian companies like GDLS-Canada to work more closely with our government to build those sovereign capabilities: the armored vehicles, the drones, the icebreakers, the equipment that our armed forces need.”
The strategy requires companies to invest in Canadian research and development, hire local workers, and expand domestic supply chains. Carney noted, “In return, the federal government will act as an anchor customer — accelerating approvals and opening doors to new export markets. The commitment is simple: when Canadian companies build for Canada, Canada will build with them.”
The production of these armored vehicles at GDLS-Canada involves collaboration with over 600 Canadian suppliers, highlighting the extensive domestic involvement in the defense sector.
This framework emerged partly in response to U.S. President Donald Trump’s 2025 decision to impose tariffs on Canada and other economic threats, which underscored the need for Canada to lessen its dependency on U.S.-manufactured military gear. Carney expressed, “We should no longer send three-quarters of our defense capital spending to America.” However, he also indicated openness to working with U.S.-owned companies like GDLS-Canada, provided they commit economically to Canada.
Dave Haggerty, vice president and general manager of GDLS-Canada, expressed enthusiasm for the partnership, stating, “Our team takes great pride in the opportunity to provide Canadian soldiers with the advanced combat vehicle platforms and support they need to succeed, while continuing to strengthen Canada’s sovereign capabilities, its defense industrial base, and skilled workforce.”
