Government of Canada to Upgrade Army Vehicles


Enhancements support Army needs and maintain Canadian jobs

Enhancements support Army needs and maintain Canadian jobs
February 10, 2017 – London, Ontario – National Defence / Canadian Armed Forces

The Government of Canada is committed to supporting the Canadian Armed Forces by providing them the equipment they need to do their jobs. These efforts also support Canadian manufacturing, innovation, skills and economic development, and create good, well-paying jobs for the middle class.

The Department of National Defence is investing $404M to upgrade the chassis (hull) of 141 Light Armoured Vehicles (LAV). Upgrades will improve the mobility, protection, ergonomics and information management of the vehicles in order to increase the operational effectiveness of the soldiers using them.

General Dynamics Land Systems – Canada employs over 2000 people in the London region. This announcement will sustain the equivalent of approximately 250 advanced skilled jobs for the middle class and will benefit numerous Canadian small and medium enterprises that supply equipment and services to General Dynamics.

The Industrial and Regional Benefits (IRB) Policy applies to this contract. General Dynamics will make investments in the Canadian economy equal to the value of the contract amendment. General Dynamics has forged important business relationships and supply chain partnerships that will maintain middle-class jobs and help grow Canada’s manufacturing base as a result of its IRB obligations.


“The Light Armoured Vehicle Upgrade project will help to ensure that the Canadian Army is well-equipped and able to succeed at operations at home and abroad. LAVs have played a key role in operations such as in Afghanistan and they will continue to do so for years to come.”

Defence Minister Harjit S. Sajjan
“Our Government is committed to providing our women and men in uniform with the equipment they need to do their jobs safely and effectively, at the best possible value to Canadians. This procurement will ensure our armed forces are equipped with safer, more advanced vehicles and will create and maintain good paying jobs for middle class Canadians.”

Public Services and Procurement Canada Minister Judy M. Foote
“As with all of our defence procurement projects, an important objective of our government is to generate strong and sustained economic benefits for Canadian workers and companies. Through the application of the Industrial and Regional Benefits Policy, General Dynamics Land Systems – Canada will make investments in Canada equal to the value of the contract. This will help grow our country’s manufacturing base, maintain middle-class jobs and build strong partnerships with suppliers across Canada.”

Innovation, Science, and Economic Development Canada Minister Navdeep Bains
“Like all Londoners, I am extremely proud of the quality of the work that GDLS does, and indeed of the workforce that produces this equipment. We are rightly proud that our local workforce is playing an integral role in keeping Canadians safe.”

Parliamentary Secretary for Science and Member of Parliament for London West Kate Young

Quick Facts

  • The LAV III Upgrade Project, originally announced in 2009, aims to modernize the existing LAV III fleet. Enhancements include strengthened passenger safety and protection against mines and improvised explosive devices, better mobility, improved ergonomics, and information management.
  • Canada’s LAV is a state-of-the-art combat vehicle used to transport Canadian infantry on the battlefield while providing defensive protection and firepower.
  • The experiences of the Canadian Armed Forces continue to demonstrate the ongoing requirement for a highly protected, yet highly mobile, Light Armoured Vehicle.
  • Since 2011, 409 vehicles have been upgraded. This project extends the lifespan of the LAV to 2035.
  • The Industrial and Regional Benefits (IRB) Policy has been transformed into the Industrial and Technological Benefits (ITB) Policy. Under the ITB Policy, companies awarded defence procurement contracts are required to undertake business activity in Canada equal to the value of the contract. The ITB Policy is a significantly more powerful government lever than the IRB Policy because it includes a Value Proposition that requires bidders to compete on the basis of the economic benefits to Canada associated with each bid.


Media Relations
Department of National Defence

Photo from

Be the first to comment

Leave a Reply

Your email address will not be published.