Canada orders $1.4bn in armored vehicles to cut US defense reliance
Canada is buying 190 armored combat support vehicles and sending 35 more to Ukraine as part of a new industrial strategy designed to reduce its reliance on US military equipment.
Canada has awarded a C$2 billion (US$1.4 billion) contract to General Dynamics Land Systems-Canada for 190 wheeled light armored combat support vehicles to be delivered over the next four years. Prime Minister Mark Carney also announced on July 16 that Canada will fund the production of an additional 35 armored vehicles for Ukraine, supplementing the 89 already donated.
For European allies, this procurement carries direct security implications. The same family of combat support vehicles is currently deployed with the Canadian-led NATO Multinational Brigade in Latvia, a key bulwark on the alliance's eastern flank. The additional 35 vehicles headed to Kyiv will provide further ground support across eight variants, including ambulances, command posts, and electronic warfare platforms.
The vehicles are all based on GDLS-Canada’s Light Armored Vehicle 6.0 platform. Using a common chassis allows the army to field diverse capabilities while significantly reducing training and sustainment costs. The new purchase will increase the Canadian Army's fleet of these vehicles from 360 to 550, following the successful delivery of an initial 2019 order.
However, the broader significance of the announcement lies in the industrial policy underpinning it. Carney designated GDLS-Canada as the first strategic partner under Canada's newly established Defence Industrial Strategy. The framework explicitly prioritizes buying military equipment from Canadian-based firms.
This pivot is a calculated economic and security response to Washington. Following US President Donald Trump's 2025 decision to hit Canada with significant tariffs and threats of economic punishment, Ottawa moved to insulate its supply chains. Carney stated explicitly that Canada must end the practice of sending three-quarters of its defense capital spending to America.
The new strategy requires defense contractors to commit to domestic research and development, local hiring, and expanding Canadian supply chains. In exchange, the federal government acts as an anchor customer, promising to accelerate approvals and open doors to export markets. "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 armored vehicles, the drones, the icebreakers, the equipment that our armed forces need," Carney said.
While GDLS-Canada is a subsidiary of a US parent company, its operations are deeply embedded in the Canadian economy. The armored vehicle construction relies on more than 600 Canadian suppliers. "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 defense industrial base, and skilled workforce," said GDLS-Canada vice president and general manager Dave Haggerty.
