Canada Awards $1.4 Billion Contract for 190 New Armoured Combat Support Vehicles, Expands Indigenous Defence Manufacturing

Victoria (British Columbia), July 2026 : Canada has announced a major expansion of its armoured vehicle fleet by awarding a contract worth nearly C$2 billion (US$1.4 billion) to General Dynamics Land Systems-Canada (GDLS-Canada) for the production of 190 additional Armoured Combat Support Vehicles (ACSVs) over the next four years. The move marks one of the country’s most significant defence procurement initiatives in recent years and underscores Ottawa’s growing emphasis on strengthening domestic defence manufacturing and reducing dependence on foreign suppliers.

Prime Minister Mark Carney unveiled the agreement during a visit to GDLS-Canada’s manufacturing facility in London, Ontario. Alongside the acquisition for the Canadian Armed Forces, the government also announced funding for the company to build 35 additional ACSVs for Ukraine, reinforcing Canada’s continued military support for Kyiv amid the ongoing conflict with Russia.

Canada has already donated 89 Armoured Combat Support Vehicles to Ukraine in previous aid packages, and the latest commitment further strengthens its assistance to the war-torn nation while simultaneously boosting domestic industrial production.

The new order will significantly enhance the operational capabilities of the Canadian Army by increasing its fleet of wheeled Armoured Combat Support Vehicles from 360 to 550 vehicles. The first batch of 360 ACSVs was ordered in 2019, with all vehicles now delivered and in active service.

The ACSV is built on the proven Light Armoured Vehicle (LAV) 6.0 platform, developed by GDLS-Canada. Using a common platform enables the Canadian Army to streamline maintenance, logistics, spare parts management, and personnel training while reducing long-term operating costs.

Designed as a highly versatile battlefield support platform, the ACSV is available in eight specialised variants to perform a broad range of military roles. These include ambulance, command post, troop and cargo carrier, electronic warfare, maintenance and recovery, mobile repair team, fitter and cargo, and engineer support vehicles. The flexibility of the platform allows it to support combat operations, humanitarian missions, disaster response, and multinational deployments.

The vehicles are already serving overseas with the Canadian-led NATO Multinational Brigade in Latvia, where they contribute to NATO’s deterrence and defence posture along the alliance’s eastern flank.

Beyond the vehicle acquisition, Prime Minister Carney announced that GDLS-Canada has become the first strategic partner under Canada’s newly launched Defence Industrial Strategy framework, a policy designed to strengthen domestic defence production and enhance Canada’s industrial self-reliance.

The new framework prioritises procurement from companies that manufacture within Canada and commit to expanding the country’s defence industrial base. Under the policy, participating firms must invest in Canadian research and development, create skilled domestic jobs, strengthen local supply chains, and expand manufacturing capacity.

“In return, the federal government will act as an anchor customer, accelerate approvals, and help Canadian companies access new export opportunities,” Carney said, emphasising that the objective is to build sovereign industrial capabilities while ensuring the Canadian Armed Forces receive advanced military equipment produced domestically.

He added that Canada’s future defence requirements—including armoured vehicles, drones, icebreakers and other strategic equipment—should increasingly be met through Canadian manufacturing.

According to the Prime Minister, production of the ACSVs already supports more than 600 Canadian suppliers, highlighting the project’s significant contribution to the country’s manufacturing sector and high-skilled workforce.

The announcement comes amid Canada’s broader effort to diversify its defence procurement strategy following trade tensions with the United States. In recent years, Ottawa has sought to reduce its dependence on American-made military equipment after Washington imposed tariffs on Canadian goods and adopted increasingly protectionist policies.

Carney has repeatedly argued that Canada should retain a larger share of its defence spending within its own economy instead of directing most capital expenditure abroad. While signalling continued openness to foreign-owned companies operating in Canada, he stressed that they must demonstrate meaningful long-term investments in Canadian industry, jobs, and innovation.

GDLS-Canada welcomed the government’s decision, describing it as a milestone for both the company and the country’s defence sector. Company Vice-President and General Manager Dave Haggerty said the partnership would ensure Canadian soldiers receive advanced combat support vehicles while strengthening Canada’s sovereign defence capabilities, expanding its industrial base, and creating high-value employment opportunities across the country.

The latest investment reflects Canada’s long-term strategy of modernising its armed forces while simultaneously building a resilient and globally competitive domestic defence manufacturing ecosystem.