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Canada Awards Massive Contract for Logistics Vehicle Modernization Project with Power Team Consortium.


The Canadian government, through National Defence Minister Bill Blair, announced on May 29, 2024, the formal award of a massive contract for its Logistics Vehicle Modernisation (LVM) project. The Power Team consortium, comprising industry leaders such as General Dynamics Land Systems-Canada (GDLS-Canada), Marshall Canada, Mercedes Benz, Soframe, and Manac, has been selected to provide a new fleet of logistics vehicles in a deal valued at 2.8 billion Canadian dollars, approximately 1.8 billion US dollars.

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 Mercedes Benz Zetros highly off-road-capable truck  (Picture source: Mercedes Benz)


This ambitious program aims to acquire 1,500 new vehicles, including light and heavy trucks, trailers, vehicle modules, and armored protection kits. These vehicles are designed not just for transport but will serve various roles such as cargo space, troop transport, ambulances, workshops, and command posts, thereby enhancing the versatility and responsiveness of the Canadian Armed Forces.

The first phase of the contract, worth 1.5 billion Canadian dollars, will cover the acquisition of over 1,000 light trucks and about 500 heavy trucks. A second contract also provides for in-service support over 25 years, with a potential total value of 1.08 billion Canadian dollars, ensuring effective maintenance and management of this new fleet, including the light trucks mounted on the highly off-road-capable Zetros chassis from Mercedes Benz.

Mission modules, which can be mounted on Mercedes-Benz Zetros truck chassis, will be produced by Marshall and are designed to be interchangeable between light and heavy configurations. This modularity will allow for quick adaptation to the varying needs of military operations, whether they are logistics, medical, or command missions.

This project continues the Canadian military's modernization efforts, highlighting the importance of modern and effective logistics in contemporary defense strategies. With previous purchases of Zetros vehicles by the German army and ongoing support to Ukraine, Mercedes-Benz confirms its role as a reliable supplier for global armed forces, thereby strengthening Canada's position on the international defense stage.

To note, the Zetros is an off-road truck by Mercedes-Benz, designed to operate in challenging environments. It was first introduced at the Eurosatory Trade Fair in Paris in 2008. Starting in 2012, 110 Zetros trucks have been equipped to the Bundeswehr (German army). The truck is designed to be transportable by C-130 Hercules.

The Mercedes-Benz Zetros off-road specialist is engineered for harsh conditions. It's designed to navigate soft ground, forests, and steep terrains with ease. Equipped with a powerful engine, a 16-speed transmission, and a two-stage transfer case, the Zetros can traverse terrain that might otherwise necessitate detours. For high payload transportation over rough terrain, drivers benefit from the truck's large slope and gradient angles, as well as its fording capability. Engageable differential locks provide traction even when some wheels lose grip. The seating position behind the front axle offers a relatively smooth driving experience and good vehicle control at high speeds and in poor road conditions.


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