The contract with General Dynamics Land Systems-Canada will significantly expand Canada's fleet of wheeled light armored combat support vehicles (ACSV). Worth approximately 2 billion Canadian dollars (1.4 billion USD), the agreement covers delivery of 190 vehicles over the next four years. Announced by Prime Minister Mark Carney on July 16, the contract stipulates that General Dynamics Land Systems-Canada will also manufacture 35 additional vehicles for Ukraine. Canada previously donated 89 such vehicles to Ukraine.

With the new procurement, Canada's ACSV fleet will grow from 360 to 550 vehicles. General Dynamics Land Systems-Canada originally contracted for the first 360 vehicles in August 2019, with deliveries now complete. The ACSV platform is produced in eight different configurations: ambulance, command center, personnel and cargo transport, electronic warfare, maintenance and recovery, mobile repair team, maintenance/cargo transport, and fortification. All variants are based on General Dynamics Land Systems-Canada's LAV (Light Armored Vehicle 6.0) platform, helping reduce the military's training and maintenance costs. Current ACSV vehicles are operationally deployed with the Canadian-led NATO Multinational Battle Group in Latvia.

Prime Minister Carney announced that General Dynamics Land Systems-Canada has been designated as the first strategic partner under the government's newly established Defence Industry Strategy. This strategy emphasizes procurement of defense equipment from Canadian-based companies. Speaking during a factory visit, Carney stated that the framework enables Canadian companies to work more closely with the government to develop sovereignty capabilities such as armored vehicles, unmanned aerial vehicles, icebreakers, and equipment required by the armed forces.

Under the Defence Industry Strategy, participating companies must invest in research and development activities in Canada, employ domestic workforce, and expand domestic supply chains. In return, the federal government assumes the role of primary customer, accelerating approval processes and opening doors to new export markets. Carney emphasized that when Canadian companies produce for Canada, Canada will build with them. More than 600 Canadian suppliers are involved in General Dynamics Land Systems-Canada's armored vehicle production activities.

The contract represents a significant step in NATO allies' ground platform modernization. It demonstrates the operational success and reliability of the LAV 6.0 platform operated by General Dynamics Land Systems-Canada. The modular LAV series, used by numerous countries worldwide, enables armed forces to accomplish diverse missions through various configuration options. Canada's ACSV fleet reaching 550 vehicles is a strategic choice to strengthen NATO's presence in Eastern Europe. The 35 vehicles provided to Ukraine demonstrate Canada's commitment to defense support.