USA

Canada to acquire JLTV fleet from U.S. in $160 million deal

The U.S. State Department has authorized a possible Foreign Military Sale to Canada involving Joint Light Tactical Vehicles (JLTVs) and related equipment, with an estimated value of $160 million, the Defense Security Cooperation Agency (DSCA) announced.

Following the required certification to Congress, the proposed deal covers up to 60 JLTVs and nine cargo trailers, along with communications systems, mobility enhancements, lethality and survivability upgrades, spare parts, maintenance tools, technical manuals, training equipment, and full package fielding support.

Additional services in the package include depot-level maintenance, U.S. government and contractor technical assistance, engineering and logistics support, and new equipment training.

The DSCA said the sale would support U.S. policy objectives by strengthening the capabilities of a NATO ally engaged in military, peacekeeping, and humanitarian operations. It noted the acquisition would enhance Canada’s ability to address current and emerging threats and operate in complex environments, while contributing to allied burden-sharing in global security efforts.

The primary contractor will be AM General, LLC, with facilities in Auburn Hills, Michigan, and Mishawaka, Indiana. Canada typically requests industrial offsets, but any such arrangements would be negotiated directly with AM General.

Program implementation could span up to six years, involving multiple visits to Canada by as many as 15 U.S. government staff and 20 contractor representatives for training, fielding, and logistics.

AM General has held the JLTV production contract since 2023, succeeding Oshkosh Defense, which initially won the program in 2015. If approved, the vehicles will be integrated into the Canadian Armed Forces’ existing fleet to expand tactical mobility and improve troop protection during domestic and overseas missions.