Last week, Saab issued a press release regarding Canada’s potential Gripen procurement.
If Canada chooses the Gripen, the following have been selected as local partners:
- CAE (already mentioned in connection with GlobalEye back in May)
- IMP Aerospace & Defence\n* Magellan Aerospace
The press release emphasizes Canadian sovereignty; creating an ecosystem in Canada related to aircraft assembly and training.
“Canada’s fighter capability is a long-term national investment. Together with CAE, IMP and Magellan Aerospace we are prepared to establish a strong Canadian industrial ecosystem around Gripen that delivers operational effect, national sovereignty and lasting industrial and technological benefits," says Micael Johansson, President and CEO of Saab.
These partnerships are designed to strengthen Canada’s sovereign defence capability while contributing to the development of advanced aerospace and defence expertise across the country. When activated, they will add significant new jobs and skills in areas such as high-technology manufacturing, advanced materials, and model-based systems engineering. They will also provide Canada with a self-reliant and sovereign capability to deploy, sustain and enhance a critical national asset for decades to come.
Quite a lot of hype from start to finish, which is likely also meant to highlight the contrast with Canada’s F-35 procurement. All of this if Canada chooses the Gripen.
Canada originally intended to procure 88 F-35s. Currently, it has committed to buying 16 aircraft, and the rest is under reconsideration. Two fighters have already been delivered. The F-35s are not assembled in Canada, although several parts (apparently for every single F-35) are manufactured there.
\"F-35 Fleet and Manufacturing Summary (Google AI)\"
Fleet Status
- Total Ordered: Canada has legally committed funding for 16 F-35 jets. While the initial intent was to purchase a total of 88 aircraft, Prime Minister Mark Carney paused the wider acquisition to review options—including a potential mixed fleet with Swedish Saab Gripens. [1, 2, 3]
- Current Inventory: Canada currently has 2 F-35 jets, which were delivered in late October 2026. They are temporarily stationed at Luke Air Force Base in Arizona for pilot training. [1, 2]
Manufacturing & Critical Parts
- Assembly: No F-35s are assembled in Canada. All final assembly for Canadian jets takes place in the United States (Fort Worth, Texas). [1, 2]
- Critical Components: Over 30 active Canadian defense contractors manufacture highly essential components built into every F-35 worldwide:
- Stealth Components: Stelia Aerospace in Nova Scotia manufactures 50 different lightweight, structural carbon fiber panels and doors engineered with radar-evading stealth properties.
- Major Aerostructures: Magellan Aerospace in Winnipeg produces major F-35A horizontal tail assemblies and propulsion components.
- Engine & Structural Mounts: ASCO Aerospace Canada in British Columbia machines crucial main bulkheads, engine mounts, and folding wing hinges. [1, 2, 3]
How likely do you think it is that Canada would end up procuring Gripens as well?
At least listening to Prime Minister Carney’s remarks, the political will truly seems to be there! Even regarding surveillance aircraft, he envisioned dozens of Canadian-built planes. Thousands of jobs and greater independence from their southern neighbor are certainly attractive when it comes to fighter jets as well. An official GlobalEye order seems likely at this stage, and expanding Canada-Sweden cooperation to fighter jets would be a natural fit.
Of course, a Gripen deal and backtracking on the original F-35 numbers could cause significantly more irritation with their southern neighbor, but I don’t know whether the US has the leverage to block an order at this point. That said, it could also make sense for Canada to play the Gripen card purely to negotiate better terms and more domestic manufacturing for the remaining F-35s.
Good thoughts earlier in the thread. A year ago in November, the share price was at a different level, of course, but I don’t think Canadian Gripens are genuinely priced in yet.