190 Armoured Vehicles and 6,000 Jobs: Canada Expands Defence Manufacturing in Ontario
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The Canadian government has announced an investment of nearly $2 billion over four years to manufacture and deliver 190 new armoured vehicles for the Canadian Armed Forces, combining military modernization with a major expansion of domestic defence production.
Under a new partnership with General Dynamics Land Systems–Canada, the vehicles will be designed by Canadian engineers, built with locally sourced materials and assembled at the company’s facility in London, Ontario.
The procurement will increase the military’s fleet of Armoured Combat Support Vehicles from 360 to 550, strengthening the Armed Forces’ ability to conduct training exercises and respond to missions in Canada and abroad.
The new vehicles are designed to provide enhanced protection against mines, improvised explosive devices and hostile fire, while remaining capable of operating alongside troops in demanding frontline conditions.
The order includes eight specialized configurations, including armoured ambulances, command posts, troop and equipment carriers, electronic warfare vehicles, recovery vehicles, maintenance platforms and mobile repair units. All will be based on the LAV 6.0 platform.
Prime Minister Mark Carney said the agreement reflects his government’s strategy to rebuild and re-equip the Canadian Armed Forces while directing defence spending toward Canadian workers, businesses and supply chains.
The government expects the partnership to create or support more than 6,000 jobs annually across Canada over the next eight years. Production will also rely on a network of more than 600 suppliers operating in over 100 Canadian communities.
General Dynamics Land Systems–Canada employs approximately 1,700 people at its main facility in London, Ontario, where it designs, manufactures and maintains light and medium armoured vehicles.
Since 1977, the company has delivered thousands of military vehicles to Canada and allied countries. More than 85 per cent of its revenue currently comes from exports, highlighting the importance of the London facility within Canada’s defence manufacturing sector.
The company will also become the first strategic partner under the federal government’s new Defence Industrial Strategy framework, which is intended to accelerate procurement, encourage research and development, expand supply chains and create highly skilled Canadian jobs.
In a separate commitment linked to military assistance for Kyiv, Canada has pledged 35 additional domestically manufactured armoured vehicles for Ukraine, including 10 ambulances and 25 recovery and evacuation vehicles.
That package, valued at approximately $400 million over two years, will also include training, weapons systems and long-term support services.
Canada has already delivered or committed dozens of armoured support vehicles to Ukraine. Similar vehicles are also used by Canadian troops deployed in Latvia as part of NATO’s eastern flank presence.
The agreement reflects Canada’s growing effort to rely more heavily on domestic production for major defence programs. The goal is not only to purchase military equipment, but also to use defence spending to strengthen skilled employment, industrial capacity, technological development and Canada’s ability to manufacture and maintain critical military equipment at home.
