In a significant development for Canada’s military capabilities, the Department of National Defence has awarded the prestigious Logistics Vehicle Modernization (LVM) contract to the Power Team, a consortium spearheaded by General Dynamics Land Systems-Canada (GDLS-Canada) and Marshall Canada. The announcement, made by the Honourable Bill Blair, Minister of National Defence, took place in Ottawa at the opening of CANSEC, the country’s largest security and defence exhibition.
The Power Team, which includes GDLS-Canada, Marshall Canada, Mercedes-Benz, Soframe, and Manac, has been tasked with modernizing the Canadian Armed Forces’ (CAF) logistics vehicle fleet. This fleet is crucial for transporting resources, personnel, and military equipment during both domestic and international operations, as well as training exercises.
The LVM project comprises two major contracts: one for the acquisition of over 1,000 light trucks and approximately 500 heavy trucks, valued at CAD$1.5 billion (including taxes), and another for in-service support, potentially totaling CAD$1.08 billion (including taxes) over 25 years.
Under the leadership of GDLS-Canada as the prime integrator, Marshall will manufacture a series of interchangeable light and heavy 10ft and 20ft mission modules. These modules will be designed to fit onto Mercedes-Benz Zetros trucks, which will serve as the standard vehicle chassis for all configurations.
“We are incredibly proud to be supporting this flagship logistics project for the Canadian Armed Forces as part of the Power Team,” said Marshall Chief Growth Officer Bob Baxter. “The LVM contract award demonstrates the strength of our partnership with General Dynamics and reflects the level of confidence some of the world’s largest governments have in our ability to deliver high volume, multi-year contracts.”
Marshall’s new production facility in Moncton, New Brunswick, which spans 82,000 square feet (7,600 square meters) and opened in October last year, will be the hub for producing these mission modules. This expansion is part of Marshall’s broader strategy to enhance its global presence and meet the increasing demands of its worldwide clientele.
“Delivering LVM will bring a new level of growth and maturity to Marshall’s presence in New Brunswick,” expressed Marshall Canada Executive Vice President Sam Michaud. “This is an unprecedented opportunity to further strengthen the industrial base that continues to thrive in Atlantic Canada, while hiring and training to secure a pipeline of talent into the future.”
The LVM project is projected to generate over 500 new jobs in eastern Canada by 2028. Furthermore, the production at Marshall’s Moncton site is anticipated to significantly impact New Brunswick’s economy, potentially boosting the province’s fabricated metal manufacturing sector GDP by up to 15 percent by 2026. Additionally, the project is expected to enhance export revenues, thereby helping to mitigate the trade deficit in this sector.
