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Canada Signs Strategic Partnership with GDLS-Canada for 190 Additional ACSVs
Defense Mobility

Canada Signs Strategic Partnership with GDLS-Canada for 190 Additional ACSVs

By Heavy-shift 3 min read
Canada Signs Strategic Partnership with GDLS-Canada for 190 Additional ACSVs
Canada Signs Strategic Partnership with GDLS-Canada for 190 Additional ACSVs

Canada Signs Strategic Partnership with GDLS-Canada for 190 Additional ACSVs

Published: July 16, 2026 | Defense Mobility, Contracts & Orders

Prime Minister Mark Carney announced a landmark strategic partnership with General Dynamics Land Systems–Canada (GDLS-Canada) on Thursday, awarding nearly C$2 billion (US$1.4 billion) for 190 additional Armoured Combat Support Vehicles (ACSVs). The deal also includes 35 ACSVs destined for Ukraine.

Speaking at the GDLS-Canada facility in London, Ontario, Carney described the agreement as the first under Ottawa's new Defence Industrial Strategy's Strategic Partnership Framework — a model designed to anchor major defence procurement to domestic industry.

"This is our defence industrial strategy in action," Carney said. "Our bold plan to get our Armed Forces what they need, when they need it, to scale Canadian defence companies, and to put hundreds of billions of dollars to work in the strategic sectors of our economy."

Expanding the Fleet

The additional 190 vehicles will bring Canada's ACSV fleet from 360 to 550. The original contract for 360 ACSVs was awarded in 2019, with deliveries running through the end of 2025. The new four-year deal is structured as an amendment to that existing contract.

The ACSV is built on the Light Armoured Vehicle (LAV) 6.0 platform — the same chassis that forms the backbone of the Canadian Army's wheeled armoured fleet. It is produced in eight variants: ambulance, command post, troop/cargo, electronic warfare, maintenance and recovery, mobile repair team, fitter/cargo, and engineer. This commonality reduces training and sustainment costs across the fleet.

GDLS-Canada has supplied more than 2,000 vehicles to the Canadian Armed Forces over nearly five decades and more than 9,000 vehicles to allied nations since the company was established in London in 1977.

Jobs and Supply Chain Impact

The strategic partnership is expected to create or sustain more than 6,000 high-paying Canadian jobs annually over the next eight years, according to the Prime Minister's Office. GDLS-Canada directly employs approximately 1,700 people at its London facility, supported by a network of over 600 suppliers across more than 100 communities nationwide.

The supply chain reaches coast to coast:

  • Ryan Manufacturing in Richmond, British Columbia — military-grade cable and wire harness assemblies
  • InterPro in Regina, Saskatchewan — advanced armour steel
  • Thales Canada in Saint-Laurent, Quebec — thermal imaging systems
  • IMP Aerospace & Defence in Enfield, Nova Scotia — specialized components

"Every vehicle will be designed by Canadian engineers, built with Canadian materials, and assembled by Canadian workers," Carney said, noting that more than 85% of GDLS-Canada's revenues come from exports, making the company a significant contributor to Canada's balance of trade.

Strategic Framework

The agreement establishes GDLS-Canada as the first Strategic Partner under the Defence Industrial Strategy's new framework, which was unveiled in February 2026. The framework requires partner companies to invest in Canadian R&D, grow domestic supply chains, and hire Canadian workers. In return, the federal government acts as an anchor customer — accelerating approvals and opening export market access.

Defence Minister David McGuinty joined Carney for the announcement. "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," McGuinty said.

The broader Defence Industrial Strategy positions Canadian industry to capture C$180 billion in defence procurement opportunities and C$290 billion in defence-related capital investment over the next decade.

Support for Ukraine

The 35 ACSVs for Ukraine were pledged by Carney at the NATO summit in Turkey the previous week. Canada has now committed or delivered 124 armoured vehicles to Ukraine, part of more than C$8.5 billion in total Canadian military assistance. ACSVs are already operationally deployed with the Canadian-led NATO Multinational Brigade in Latvia under Operation REASSURANCE, and have served in Canadian missions in Afghanistan and other theatres.

GDLS-Canada vice president and general manager Dave Haggerty welcomed the announcement. "We are honoured that Prime Minister Carney and Minister McGuinty visited our London facility to make this announcement," he said. "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 next generation capability and operational requirements."

Sources

Defense Mobility Contracts & Orders