Carney announces made-in-Canada armoured vehicle deal worth nearly $2B

Mark Carney says the federal government will spend $2 billion over the next four years to purchase 190 armoured vehicles from an Ontario-based manufacturer.

The federal government intends to spend nearly $2 billion over the next four years on made-in Canada armoured vehicles, Prime Minister Mark Carney said Thursday.

The planned addition of 190 armoured combat support vehicles will bring the Canadian Armed Forces’ total fleet up to 550 vehicles, he said. The new vehicles will be used in training exercises at military bases across the country, according to a media release.

Carney announced the deal Thursday in London, Ont., at General Dynamics Land Systems-Canada, an aerospace and defence contractor whose parent company is headquartered in the United States.

The prime minister said every single vehicle will be built at the company’s Ontario factory with parts sourced from providers across the country.

“All of those parts — each intricately crafted and built by Canadians from British Columbia to Nova Scotia — arrive here, on the London factory floor, where (General Dynamics) workers turn them into advanced armoured combat vehicles,” Carney said.

Carney claimed the strategic partnership with General Dynamics — the first under Ottawa’s new defence industrial strategy unveiled in February — will “create and sustain” 6,000 jobs over the next eight years.

The defence strategy seeks to build out Canada’s national security capabilities using domestic suppliers whenever possible. When homegrown providers aren’t available, the government looks to partner with other nations or buy off-the-shelf systems.

“This is a 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 that we need to protect ourselves and our allies ... to work in strategic sectors of our economy,” Carney said.

Defence Minister David McGuinty joined Carney for the announcement. He said Canada “can’t afford to stand still” and must be ready to defend its sovereignty and its allies.

McGuinty said the strength of Canada’s military depends on its industry being able to build what the armed forces need at home.

Ottawa bought 360 armoured vehicles from General Dynamics in 2019, which were to be delivered by the end of 2025.

Armoured vehicles built by General Dynamics have been deployed in Canadian missions in Latvia and Afghanistan, Carney noted Thursday.

Carney announced last week at the NATO summit in Turkey that 35 of the vehicles will be built to support Ukraine in its fight against Russia. The government says it has donated 89 armoured vehicles to Ukraine so far.

With files from Maan Alhmidi in London and Craig Lord in Ottawa