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

LONDON, ON, July 16, 2026 /CNW/ -- 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.

Associated links

• Armoured Combat Support Vehicle (ACSV)
• Canada's Defence Industrial Strategy
• Defence Investment Agency

This document is also available at https://pm.gc.ca

SOURCE Prime Minister's Office

PMO Media Relations: [email protected]