Ottawa to Spend $2 Billion on 190 Armoured Vehicles for Military

Prime Minister Mark Carney, centre right, takes a tour during a visit to General Dynamics in London, Ont., on July 16, 2026. The Canadian Press/Nicole Osborne

Prime Minister Mark Carney says his government will spend $2 billion over four years to buy 190 armoured combat support vehicles for the Canadian Armed Forces.

The vehicles will be manufactured by General Dynamics Land Systems in London, Ont., Carney told reporters on July 16. He said the vehicles will boost Canada’s fleet of armoured combat support vehicles to 550.

“These vehicles are manufactured in order to last, with capabilities which match the next generation’s requirements,” Carney said during the press conference in London.

The Prime Minister’s Office (PMO) said the vehicles are designed to protect against gunfire, mines, and improvised explosive devices, and are mobile enough to keep pace with forces on the front lines.

The PMO said the partnership is expected to create or sustain more than 6,000 jobs annually over the next eight years. He said the manufacturing of the vehicles would support additional jobs across Canada, including for steel workers in Saskatchewan, thermal imaging engineers in Quebec, and electricians in Nova Scotia.

Carney said that Ottawa’s partnership with General Dynamics is the first in the government’s Defence Industrial Strategy’s Strategic Partnership Framework, which is meant to help Canada’s defence companies partner with Canadian industry. Under the framework, companies commit to investing in Canadian research and development, growing the country’s supply chains, and hiring Canadians.

Canada has increased defence spending in recent years, raising its military budget from $38.3 billion in 2023 to $62.7 billion in 2025 as it reached NATO’s longstanding target of spending 2 percent of GDP on defence. Carney has also committed Canada to meeting NATO’s new target of investing 5 percent of GDP in defence and defence-related spending by 2035.

The announcement is the latest in a series of defence procurement decisions by the Carney government.

On July 6, Carney announced that his government had selected the German defence company ThyssenKrupp Marine Systems (TKMS) as the preferred bidder to build Canada’s next fleet of submarines. He said Ottawa would procure up to 12 Type 212CD submarines, with the federal government entering into negotiations with the company.

In May, Carney said Ottawa had entered negotiations to procure new Swedish GlobalEye early warning aircraft, instead of buying the U.S.-made Boeing E-7 Wedgetail and the L3Harris Aeris X.

While Canada remains committed to purchasing 88 F-35 fighter jets, Carney ordered a review of the procurement in early 2025 following U.S. tariffs on Canadian goods. Since then, Ottawa has explored replacing part of the order with Sweden’s Gripen fighter.