Prime Minister Mark Carney announced the partnership at GDLS-Canada’s facility in London, Ontario, alongside Minister of National Defence David McGuinty. The Canadian government said the investment will be made over four years and will expand Canada’s ACSV fleet from 360 to 550 vehicles.
The agreement makes GDLS-Canada Canada’s first Strategic Partner under the Defence Industrial Strategy’s Strategic Partnership Framework. The government said the framework is intended to create closer cooperation with Canadian companies on sovereign capabilities, including armoured vehicles, drones and icebreakers.
“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,” Carney said. “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,” Carney said.
GDLS-Canada said the agreement will streamline future armoured vehicle technology development, integration of new solutions for fielded fleets and upgrades needed to address current and future threats. The partnership also creates a long-term framework for Canada’s Armoured Combat Vehicle-Wheeled programme, covering delivery, sustainment, modernisation and future fleet evolution.
The additional 190 ACSVs will be used in training exercises at Canadian Armed Forces bases across the country. The government said the vehicles are designed to protect soldiers against mines, improvised explosive devices and enemy fire while maintaining mobility with front-line forces.
“Today, our team takes great pride in the opportunity to provide Canadian soldiers with the advanced combat vehicle platforms and support they need to succeed, while continuing to strengthen Canada’s sovereign capabilities, its defence industrial base, and skilled workforce,” said GDLS-Canada vice president and general manager Dave Haggerty.
“We are honoured that Prime Minister Mark Carney and the Minister of National Defence David McGuinty visited our London facility to make this announcement. With this strategic partnership agreement, General Dynamics, and our Canadian supply chain, look forward to supplying the Canadian Armed Forces with additional Armoured Combat Support Vehicles that will meet the next generation capability and operational requirements.”
Canada said every vehicle will be designed by Canadian engineers, built with Canadian materials and assembled by Canadian workers in London, Ontario. The 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 draws on more than 600 Canadian suppliers in over 100 communities, including steel production, thermal imaging systems and specialised components. GDLS-Canada employs more than 1,700 workers and said its broader supply chain sustains more than 13,400 jobs across 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,” said David J. McGuinty, Minister of National Defence. “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.”
The ACSV fleet is based on the Light Armoured Vehicle 6.0 platform and is delivered in eight variants, including ambulance, command post, troop/cargo, electronic warfare, maintenance and recovery, mobile repair team, fitter/cargo and engineer. The government said the common platform reduces training and sustainment costs and helps keep more of the fleet operational.
ACSVs are already deployed with the Canadian-led NATO Multinational Brigade in Latvia under Operation REASSURANCE. Canada has donated 89 of the vehicles to Ukraine and committed another 35 at the 2026 NATO Summit as part of more than $8.5 billion in Canadian military assistance to Kyiv.
“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,” said Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions. “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.”
Since 1977, GDLS-Canada has delivered more than 2,000 vehicles to the Canadian Armed Forces and more than 9,000 vehicles to Canada’s allies and partners. The company said more than 85% of its revenue comes from exports, supporting its domestic business base and its role in Canada’s defence industry.
