Department Of National Defence Moves to Acquire New Armoured Personnel Carrier
LONDON (Ontario)---The Honourable Art Eggleton, Minister of National Defence, today announced DND is exercising the second option of a previously signed contract with Diesel Division General Motors (DDGM) of Canada Limited to produce 120 Armoured Personnel Carriers (APCs). The second option of the contract is valued at $247 million. Exercising the second option brings the total number of vehicles being produced for DND by DDGM up to 480. "With the type of missions the Canadian Forces are involved in, it is important that our soldiers receive the best equipment available," said Minister Eggleton. "And we are meeting that objective by providing our soldiers with these new armoured vehicles." In August 1995, the federal government gave approval in principle to the Department of National Defence (DND) to procure up to 651 armoured personnel carriers known as light armoured vehicles (LAVs). On January 9, 1997, the federal government awarded a $552-million contract to DDGM to build 240 new eight-wheel-drive APCs, designed to fill a wide variety of military and peace support roles. In August 1998, the first contractual option was exercised for an additional 120, bringing the total number up to 360 vehicles. The APC replacement project has broad industrial and regional benefits, including the creation of up to 31,000 person years of employment across all regions of Canada. The Canadian Forces use APCs in a variety of missions, including peacekeeping and peacemaking operations such as those in Bosnia, Kosovo and Haiti. As well, they are used to deliver humanitarian aid and to support disaster-relief operations such as the Manitoba flood effort in 1997 and the ice storm in Quebec and Eastern Ontario in 1998. The APC is an important element of Canada's multipurpose, combat-capable armed forces. Equipped with a 25 millimetre cannon and enhanced armour protection, the turreted, eight-wheeled vehicle can carry up to 10 soldiers. The 16,300 kilogram, 2.66 metre-wide personnel carrier is similar in design to the Coyote reconnaissance vehicle currently being delivered by DDGM and will therefore result in training and maintenance cost savings. The APC will be capable of eight-wheel drive, will be able to travel on roads or across country, and will also be able to ford rivers and streams. Diesel Division, General Motors of Canada Ltd. was established in 1949 as a manufacturer of diesel-electric freight and passenger locomotives. Today, it is a major designer and manufacturer of armoured vehicles and has provided vehicles for the Canadian Forces and the armed forces of the U.S., Australia and Saudi Arabia. It employs about 2,700 people at its major assembly facilities in London, Ontario. Funding for this program was provided in a previous federal budget and is therefore built into the existing fiscal framework. This project is an example of how this government is prioritizing its spending so that it can better serve Canadians by making efficient use of their tax dollars.
Background Notes: Land Force Command has identified a need for a total of 1,950 APCs. Its current fleet is a mixture of about 1,700 APCs of various types, including about 1,200 tracked M113s purchased in the mid-1960s, as well as 269 wheeled Grizzly and 199 Bison APCs which were acquired in the 1970s and 1980s. The threat to the safety of soldiers has increased significantly since these vehicles were acquired. Nowhere is this more evident than in the former Yugoslavia, where our APCs had to be retrofitted with gun shields and add-on armour to provide better protection for their crews. The new APCs are being built by Diesel Division, General Motors of Canada Limited (DDGM) of London, Ontario. DDGM is the only manufacturer of light armoured vehicles in Canada. The new APC will be based on a stretched version of the DDGM 8X8 Light Armoured Vehicle 25 (LAV 25). It is based on a design similar to the Coyote reconnaissance vehicle currently being delivered to the Canadian Forces by DDGM. This commonality will result in savings related to training, operations, and maintenance costs. The operational record of armoured vehicles produced by DDGM is well proven. The LAV 25 was used by the U.S. Marine Corps during the Gulf War. It has also been purchased by Saudi Arabia and Australia. The contract with DDGM to manufacture new vehicles will generate significant regional industrial benefits. These benefits will be equal to 100 per cent of the contract value.
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Department Of National Defence Moves to Acquire New Armoured Personnel Carrier
