Canadian Manufacturing

General Dynamics wins $404M armoured vehicle contract with Canadian Army

New deal amends a $1 billion 2011 agreement, supports jobs in London, Ont.


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A Canadian Army LAV III during a training exercise. PHOTO: Allied Joint Force Command Brunssum/Flickr

LONDON, Ont.—General Dynamics Corp. has landed a major federal contract for continued upgrades on the Canadian Armed Forces’ fleet of light armoured vehicles.

Defence Minister Harjit Sajjan announced the $404 million agreement Feb. 10 at the U.S. defence company’s Canadian subsidiary in London, Ont.

The new contract amends a $1 billion 2011 agreement between the federal government and General Dynamics Land Systems – Canada, expanding the scope of work to include chassis upgrades for 141 LAV III infantry carriers. Under the original deal, the vehicles were only to receive upgrades to their turrets, but the additional hull work is expected to improve the vehicle’s mobility, protection and information management.

Sajjan said the deal will ensure Canadian soldiers are well-equipped as well as maintain manufacturing jobs in the southern Ontario city.

General Dynamics employs more than 2,000 in the London area—approximately 250 of which will work on the LAV III upgrades.

The new contract and original deal are designed to extend the life of the Canadian light vehicle fleet until 2035.


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