London defence firm lands $2B military vehicle contract

Ottawa says the deal will support about 6,000 jobs, most of them in the London region, over eight years.

The federal government will spend $2 billion over four years to expand the Canadian Armed Forces’ fleet of armoured vehicles by purchasing 190 from London-based General Dynamics Land Systems-Canada. The vehicles, based on GDLS’ Light Armoured Vehicle 6.0 platform already widely used by the Canadian Army, will expand the military’s fleet to 550 from 360. The contract will also support about 6,000 jobs, most of them in the London region, over eight years, Prime Minister Mark Carney said Thursday.

“These vehicles are designed to keep soldiers protected, mobile, mission-ready in the most demanding environments,” he said. “Every single one will be built right here at GDLS Canada’s factory, right here in London.” The contract makes GDLS-Canada the first partner under the federal government’s new defence industrial strategy, an initiative designed to rebuild the Canadian military using domestic supply chains.

The 190 vehicles are designed to protect against mines and enemy fire and will be used in training exercises at Canadian Armed Forces bases across the country, the government said. “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 armoured vehicles, the drones, the icebreakers, the equipment that our armed forces need,” Carney said. The contract is a significant boost for GDLS-Canada, which employs about 1,800 workers.

It is also the latest in a series of federal defence announcements, including the selection of German shipbuilder ThyssenKrupp Marine Systems as the preferred supplier to build up to 12 submarines for the Royal Canadian Navy. Last fall, the federal government pledged $81.8 billion in defence spending over five years. Of that, $17.9 billion was earmarked to expand Canada’s military capabilities, including investments in logistics, light utility and armoured vehicles, counter-drone and long-range precision strike capabilities, and domestic ammunition production.