OTTAWA — The Canadian government has announced a nearly $2 billion investment to procure 190 additional Armoured Combat Support Vehicles (ACSVs) under a new strategic partnership with General Dynamics Land Systems-Canada (GDLS-Canada). The four-year program is aimed at modernizing the Canadian Armed Forces (CAF) while strengthening Canada's domestic defence industry and supply chain.
Prime Minister Mark Carney announced the investment on July 16 in London, Ontario, alongside Defence Minister David McGuinty. The agreement makes GDLS-Canada the first company selected as a Strategic Partner under Canada's newly introduced Defence Industrial Strategy Strategic Partnership Framework.
Canadian Army to Expand ACSV Fleet
The procurement will increase the Canadian Armed Forces' ACSV fleet from 360 to 550 vehicles. The additional vehicles will mainly support training activities at military bases across Canada, helping prepare personnel before operational deployments.
The new vehicles will gradually replace the Canadian Army's aging LAV II Bison and M113 tracked vehicle fleets. They are built on the Light Armoured Vehicle 6.0 (LAV 6.0) platform, allowing multiple vehicle variants to share the same chassis. Using a common platform simplifies maintenance, reduces training requirements, lowers long-term sustainment costs, and improves fleet availability.
The new fleet will include eight mission-specific variants:
- Ambulance
- Command post
- Troop and cargo transport
- Electronic warfare
- Maintenance and recovery
- Mobile repair team
- Fitter/cargo
- Engineer
The ACSVs are equipped with advanced armour protection designed to withstand mines, improvised explosive devices (IEDs), and direct enemy fire while maintaining the mobility needed to operate alongside front-line combat units.
Long-Term Strategic Partnership
The agreement establishes a long-term framework for Canada's Armoured Combat Vehicle-Wheeled program, covering vehicle delivery, sustainment, modernization, and future fleet development.
Under the Defence Industrial Strategy's Strategic Partnership Framework, selected companies commit to investing in Canadian research and development, expanding domestic supply chains, and supporting Canadian jobs. In return, the federal government serves as an anchor customer, providing long-term procurement certainty that can reduce acquisition risks, accelerate project approvals, and support future export opportunities.
Domestic Manufacturing and Economic Impact
The government said all 190 vehicles will be designed, sourced, and assembled in Canada. Production will take place at GDLS-Canada's facility in London, Ontario, using Canadian engineering expertise and domestically supplied materials.
Officials estimate the partnership will create or sustain more than 6,000 high-paying jobs each year over the next eight years.
The production program will involve a network of more than 600 Canadian suppliers located across over 100 communities. Major contributors include:
- InterPro in Regina, supplying the raw steel used for armoured vehicle hulls.
- Thales Canada in Saint-Laurent, providing thermal imaging systems.
- IMP Aerospace & Defence in Enfield, manufacturing specialized operational components.
The government said the partnership is intended to strengthen Canada's sovereign defence manufacturing capability by supporting domestic production and expanding local industrial capacity.
Part of Canada's Defence Modernization
The procurement forms part of Canada's broader effort to modernize the Canadian Armed Forces and increase defence spending. According to the government, Canada is reaching NATO's target of spending 2% of GDP on defence for the first time since the end of the Cold War.
The ACSV fleet already supports Canadian military operations. Existing vehicles are currently deployed with the Canadian-led NATO Multinational Brigade in Latvia as part of Operation REASSURANCE.
Canada has also provided military assistance to Ukraine through the ACSV program. The government has previously donated 89 Armoured Combat Support Vehicles to Ukraine and announced an additional 35 vehicles during the 2026 NATO Summit in Turkey earlier this month.
The newly announced procurement is expected to provide the Canadian Armed Forces with additional modern support vehicles for training and operational requirements while reinforcing Canada's long-term domestic defence industrial base.
Source : pm.gc.ca
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