Swedish aerospace firm SAAB has confirmed negotiations with Ottawa and Bombardier over establishing Gripen fighter jet production in Canada, with company executives estimating the initiative could generate 10,000 jobs across manufacturing and research sectors.
In an interview at SAAB’s Stockholm headquarters, President and CEO Micael Johansson said Canada could develop its own production capabilities for the aircraft if the government adds Gripens to the Royal Canadian Air Force fleet.
“If Canada wants to create sovereign capabilities and to do their own upgrades, to build parts of it, to do final assembly and test, we are prepared to do that,” Johansson told CTV News.
The proposal responds to Prime Minister Mark Carney’s ongoing review of Canada’s existing contract with US-based Lockheed Martin for 88 F-35 fighter jets. Carney ordered the review in March, shortly after taking office amid escalating trade tensions with the United States. Canada has legally committed to purchasing 16 F-35s, but Ottawa continues evaluating the remaining 72 aircraft.
Related: US Pressures Canada to Honor F-35 Fighter Jet Agreement
Bombardier confirmed its willingness to participate in the initiative. “We confirm discussions with SAAB about the Gripen,” Mark Masluch, Bombardier’s senior director of communications, told The Globe and Mail. “Bombardier is open to providing local expertise if the government of Canada decides to go this route.”
According to Johansson, SAAB is exploring options for either constructing a dedicated production facility or repurposing an existing plant. The company could deliver initial Canadian-built Gripens within three to five years. Montreal-based aerospace companies Bombardier and CAE, along with Nova Scotia’s IMP Aerospace and Defence, could participate in the arrangement.
The proposal responds to expanding international demand. Ukraine and Sweden signed a letter of intent in October for Ukraine to purchase between 100 and 150 Gripen E-series jets. Johansson said SAAB would require additional production locations to fulfill such orders.
“If we’re going to ramp up production to support a big contract to Ukraine, we will need one or two extra hubs,” Johansson said. “It makes sense to have a big footprint in Canada together with Canadian industry.”
Swedish King Carl XVI Gustaf and Queen Silvia will visit Canada from November 18-20, leading a delegation that includes Defence Minister Pål Jonson, Deputy Prime Minister Ebba Busch and representatives from about 60 Swedish companies. The delegation will visit Ottawa and Montreal, including stops at Bombardier facilities.
The Gripen finished second to the F-35 in Canada’s fighter jet competition. Defense experts have noted that operating a dual fleet of F-35s and Gripens would require separate maintenance systems, pilot training programs and infrastructure, though several NATO countries including Italy and Britain already operate mixed fleets.
During his Liberal leadership campaign, Carney said Canada should redirect its military budget rather than sending approximately 80% of defense spending to the United States. The F-35 contract review remains ongoing, missing its September deadline, with officials continuing to weigh military requirements and industrial benefits.
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