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Canada invests $2.58 billion in new logistics vehicles

Photo by Marshall Group

Canadian Minister of National Defense Bill Blair announced a major investment of up to $2.58 billion to acquire and maintain a new fleet of logistics vehicles for the Canadian Army.

This initiative is part of the Logistics Vehicle Modernization (LVM) project, with contracts awarded to General Dynamics Land Systems – Canada and Marshall Canada.

The project will provide over 1,000 light trucks and approximately 500 heavy trucks based on the Mercedes Benz Zetros platform. Additionally, it includes armored protection kits, modules, containers, and trailers. This modern fleet will enhance the Canadian Armed Forces’ (CAF) ability to transport personnel, equipment, and supplies, offering increased mobility and protection.


These vehicles are essential for a range of domestic and international operations, including disaster relief, combat support, and peacekeeping. The new fleet is expected to be delivered starting in fall 2027, replacing the current aging fleet that has been in use since the late 1980s and early 1990s.

The LVM project also involves acquiring new trailers, material handling systems, and detachable containers and modules for various functions such as firefighting, ambulances, command posts, and workshops. This comprehensive modernization effort aims to meet the diverse operational needs of the CAF.

Minister Blair highlighted the importance of this investment: “Today’s announcement ensures that our troops have the tools they need to perform their duties safely and effectively, supporting Canada’s commitment to global peace and security.”

The LVM project is expected to create or maintain 1,550 jobs and contribute $200 million to Canada’s GDP over an eight-year period, reinforcing the economic benefits alongside the strategic advantages for national defense.

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