Canada awards multi-billion contract to General Dynamics as election looms

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Canada awards multi-billion contract to General Dynamics as election looms

On Friday, the 16th of August 2019, Canadian government had issued a statement saying that it had signed up General Dynamics Corp., an American aerospace and defense corporation headquartered in Michigan, for a multi-billion dollar contract in order to create a manufacturing hub in such a region, where the ruling Liberals saw potential agony against the government and needed to alleviate concerns ahead of an October election.

Followed by the reveal of Friday’s (August 16th) statement, Canadian Defense Minister, Harjit Sajjan, 48, a Canadian Republican politician of Indian origin, hailing from Hoshiarpur, Panjab, had been quoted saying that Ottawa had agreed to purchase as many as 360 light armored vehicles from the major US defense contractor, General Dynamics, in a deal which could be worth up to $2.26 billion (C$3 billion).

Aside from that, the Canadian Defense Ministry had also been offering a repayable loan of up to C$650 million to General Dynamics, a move widely contemplated as an attempt to tighten up its relationship with United States, meanwhile securing a substantial scale of vote-bank, a majority of which had yet to show allegiance to the Republican government of Canada ahead of a national election as early as October this year.

In point of fact, according to Canadian defense ministry, the vehicles would be built in the Canadian province of Ontario, where Liberals had been holding most of seats in the Canadian House of Commons.