Prime Minister Carney announces landmark partnership with General Dynamics Land Systems-Canada to build new fleet of armoured combat vehicles for the Canadian Armed Forces
Press Release + Noah Note
In a more dangerous and divided world, Canada is taking full responsibility for our own defence. To that end, Canada’s new government is making generational investments in the Canadian Armed Forces (CAF) – reaching NATO’s 2% defence spending target for the first time since the fall of the Berlin Wall, transforming defence procurement, and securing more than 20 defence and security partnerships in a single year.
Building on this momentum, the Prime Minister, Mark Carney, today announced a new strategic partnership with General Dynamics Land Systems-Canada (GDLS-Canada). Through this partnership, the government will invest nearly $2 billion over four years to build and deliver 190 additional Armoured Combat Support Vehicles (ACSVs). This will expand Canada’s fleet from 360 to 550 vehicles, giving our troops the equipment they need to protect Canadians and support our allies.
The new ACSVs will keep soldiers protected, mobile, and mission-ready in the most demanding environments. They combine advanced armour to protect against mines, improvised explosive devices, and enemy fire, with the mobility to keep pace with front-line forces. The additional 190 ACSVs announced today will be utilised in training exercises at CAF bases across the country.
Every vehicle will be designed by Canadian engineers, built with Canadian materials, and assembled by Canadian workers at the GDLS-Canada factory in London, Ontario. As a result, this partnership is expected to create or sustain more than 6,000 high-paying jobs across Canada every year over the next eight years. The work carried out at GDLS-Canada draws on more than 600 Canadian suppliers, in over 100 communities across the country. From the steelworkers at InterPro in Regina who produce the steel used in the armoured hulls, to the engineers at Thales Canada in Saint-Laurent who design the thermal imaging systems, to the technicians at IMP Aerospace & Defence in Enfield who build specialised components, this contract will strengthen our sovereign supply chain and generate lasting benefits to workers and communities across the country.
GDLS-Canada is Canada’s first Strategic Partner under the Defence Industrial Strategy’s Strategic Partnership Framework. Through this framework, we are creating a pathway for Canadian companies to work more closely with the government to build the sovereign capabilities – the armoured vehicles, the drones, and the icebreakers – our Armed Forces need. Companies selected as Strategic Partners commit to invest in Canadian research and development, grow domestic supply chains, and hire a Canadian workforce. In return, the federal government will act as an anchor customer – accelerating approvals and opening doors to new export markets.
Canada’s government is making the generational investments necessary to rebuild and rearm the CAF. In doing so, we are ensuring these investments strengthen our sovereign supply chains and generate real, lasting benefits for Canadian workers and their communities.
Quotes
“In a more dangerous and divided world, Canada’s government is ensuring the women and men of our Armed Forces get what they need, when they need it. Through this new partnership, GDLS-Canada will design, build, deliver, and sustain the next generation of armoured combat vehicles here in Canada. This partnership gives Canadian industry the confidence to invest, innovate, and grow, keeping skilled jobs and hard-won expertise here at home. That is how we build Canada strong.”
The Rt. Hon. Mark Carney, Prime Minister of Canada
“Strategic partnerships with Canadian industry are fundamental to ensuring the Canadian Armed Forces have the capabilities they need to defend Canada today and into the future. By working with trusted Canadian partners, we are strengthening our defence industrial base, supporting highly skilled jobs, and advancing innovation that enhances Canada’s security and sovereignty. General Dynamics Land Systems-Canada has been a valued partner in supporting the Canadian Armed Forces, and we look forward to building on that partnership to deliver the next generation of military capabilities while creating lasting economic benefits for Canadians.”
The Hon. David J. McGuinty, Minister of National Defence
“As we deliver on our commitment to rearm, rebuild, and reinvest in the Canadian Armed Forces, the Defence Industrial Strategy and the Strategic Partnership Framework are helping Canadian industry grow, innovate, and create good jobs. As a global leader in armoured combat vehicles, Canada is well positioned to capitalise on rising demand, and this investment will help drive innovation, attract investment, and create high-quality jobs that support a stronger and more resilient Canadian economy.”
The Hon. Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions
“Canada’s new government is taking decisive action to rebuild our defence capacity and strengthen our sovereignty. Through this strategic partnership with General Dynamics Land Systems-Canada, we are putting Canadian workers, Canadian expertise, and Canadian industry at the centre of our defence investments. By designing, building, and sustaining armoured combat vehicles here at home, we are creating skilled jobs, securing critical supply chains, and ensuring our Armed Forces have the equipment they need to protect Canadians.”
The Hon. Joël Lightbound, Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant
“Canada’s new approach to defence procurement is delivering capabilities to the Canadian Armed Forces faster while strengthening our domestic defence industry. The armoured combat vehicle strategic partnership is an investment in Canada’s security and economy. Through the Defence Investment Agency and the Defence Industrial Strategy, we are building enduring partnerships with Canadian companies that expand industrial capacity, drive innovation, and ensure every investment strengthens both our national security and our economy.”
The Hon. Stephen Fuhr, Secretary of State (Defence Procurement)
Quick facts
Headquartered in London, Ontario, GDLS-Canada employs more than 1,700 workers who design, manufacture, and support made-in-Canada ACSVs. Over nearly 50 years, the company has delivered over 2,000 vehicles to the CAF, and more than 9,000 vehicles to Canada’s allies and partners.
This new strategic partnership with GDLS-Canada creates a long-term framework for Canada’s Armoured Combat Vehicle-Wheeled program, supporting the delivery, sustainment, modernisation, and future evolution of the fleet. By creating a more collaborative approach between government and industry, it will streamline procurement, reduce risk, accelerate delivery, and ensure Canada can respond more quickly to evolving operational requirements.
ACSVs are delivered in eight variants – ambulance, command post, troop/cargo, electronic warfare, maintenance and recovery, mobile repair team, fitter/cargo, and engineer – all based on the Light Armoured Vehicle 6.0 platform, reducing training and sustainment costs, and keeping more of the fleet operational.
ACSVs are currently deployed with the Canadian-led NATO Multinational Brigade in Latvia under Operation REASSURANCE, and Canada has donated 89 of these vehicles to Ukraine, with an additional 35 committed at the 2026 NATO Summit, as part of more than $8.5 billion in Canadian military assistance to Ukraine.
To enable defence industries to scale up more easily and with maximum benefit to the Canadian economy, the government launched the Defence Investment Agency and the Defence Industrial Strategy:
The Defence Investment Agency is modernising Canada’s defence procurement by centralising expertise, cutting red tape, and streamlining decisions – supporting the implementation of Canada’s Defence Industrial Strategy and helping accelerate defence investments.
The Defence Industrial Strategy positions Canadian industry to take advantage of $180 billion in defence procurement opportunities and $290 billion in defence-related capital investment opportunities in Canada over the next 10 years.
Canada’s Industrial and Technological Benefits Policy will apply to contracts resulting from the strategic partnership announced today, providing opportunities for Canadian industry – including small and medium-sized businesses – to be integrated into related supply chains, with research and development and training investments aligned with the sovereign capabilities outlined in the Defence Industrial Strategy.
Noah Note: FINALLY. This ACSV order, as many of you know, has been sitting since July of last year, waiting for cabinet to give it apporval. Not mentioned in the video, but mentioned here, is also the inclusion of ACV-W being mentioned.
For those that don't know, Armoured Combat Vehicle (Wheeled) is a Medium-Class vehicle designed to succeed the current LAV6 fleet with a modern, 8x8 platform able to survive in a peer-to-peer enviornment while ensuring that Canada’s backbone armoured fleet remains relevant.
ACV-W isn't technically a replacement. Instead, it is the CAFs desire for a continuous sustainment model for the LAV fleet through incremental purchases, agile development cycles, and incremental modernizations. How that looks in practice (be that yearly batch orders or such) is yet to be determined.
The primary focus areas of ACV-W are Lethality, Survivability, Mobility, and C5ISR. Its best to know that these are broad requirements. Again, ACV-W is an incremental, agile initative. These categories are built as general focus areas that we work and develop on over time. Things like Hybrid Drivetrains, Mobile Camouflage Systems, Active Protection Systems, etc.
ACV-W will though likely be equipped with a 30mm main gun, supplemented by the addition of a ATGM or Loitering Munition system. It will also likely feature both soft and hard-kill CUAS capabilities, a bespoke battery system, and renewed focus on digital and AI integration.
These are all in the ACV-W scope, but all will arrive at different times and all will be developed over time. The systems on batch I and the systems on batch V, even if they share heritage, will likely be far different from each other. That is the joy of Agile procurement. We get involved on development and conceptualization early, working with partners to develop incremental modernizations and capability debelopment stretched out over batches.
Instead of one large order, or decade increment modernizations, individual batches slowly work in new capabilities and upgrades. It also ensures that the fleet has a sustained line open to cycle through platforms as they reach end of life, ensuring that vehicles maintain at a certain level of age and availability.
I love continuous sustainment and agile models of procurement. They're fun! 140 ACV-W were wanted in the initial batch from the Army, that is not here. There are mixed numbers, as many of you know, for numbers ACV-W fluctuates quite wildly, depending on the model used. The current expectations financially is set at ~$62-86 billion dollars depending heavily on how many we end uo procuring. The lowest number given is 2300, while the Army would prefer 3908 to meet NATO commitments.
The highest number though, which assukes a full of society mobilization in a major global conflict calles for a staggering 5080 LAV! Over five times the current inventory! ACV-W is still unfunded though, and for now the numners remain flexible, esepcially considering that ACV-W will not be a one time procurement.
Also not mentioned here is the scope of the Strategic Partnership. As of now, how these partnerships work and what is included remains open ended. Does this only include LAV, does it scale to things like IFM? How does the model work? What garuntees and incentives are built into them? Are these partnerships taken on a case-to-case basis? We don't fully know. The details aren't out there, and as the first even if not intended, the structure of this partnership will serve as the framework for future ones.
This government has shown that they will take a heavy hand. They are happy to pick winners, and they want to get shit done. They aint playing around. Be that Globaleye, ESCP-P LUV, DAME. The Federal Authorities have proven this year that they will push, and push hard. They will set the rules and the board if they feel the benfit is there.
It can be nice to see, and many of you know I am not against picking winners. I often advocate for Strategic Partnerships. However, I am watching with a sideeye. The Partnership has ripples far beyond GDLSC, and it's being positioned second, almost as a byproduct of the ACSV order. The ACSV order is neat, but it isnt the highlight here, far from it. It isnt the major thing here.
Does this partnership extent to UGV? Very likely. We have the Standing Offer coming up. Does this effect IFM? Maybe. Does this effect MCAV? Does this position GDLSC as our Armoured Vehicle monopoly? Or are we going ti keep tracked vehicles open? A tracked and Wheeled company? Right now we don't know.
But it is the things you have to think about. Does this extend beyond armoured vehicles? All of these are questions I am going to bw asking around, because their ramifications can be felt far amd wide, across the Army. Right now? They aint talking about it. They aint talking details on the partnership. We are focusing on the ACSV, and that makes my mind race with curiosity.
Openness about these kinds of deals are important, even from a procurement side of things. If we have someone specifically positioned to do stuff, than we need to know what exactly those are and how they work. In a very broad, extreme setting you could position GDLS for basically all the vehicle projects on the books with justification that they are the Strategic Partner.
I don't think this is it, not at all. I trust it would be mentioned, but without information you just don't know. Of course the PM likes to give his best defence boy his toughest battles. He no doubt did this to give me a challenge and keep me on my feet. Of course im gonna try and get more on this. If I get anything, I'll be sure to let you all know.
Are those numbers right? 3908 vehicles at 62-86 billion would make the unit cost 15-22 million per vehicle.
For this to be Agile, they need to incorporate improvements in small batches (lot size of 1 would be nice) as soon as possible and NOT wait until the next incremental (i.e. yearly) cycle to do so with a large batch of changes.