Saab Pushes Canada to Build 100+ Gripens for Ukraine | Ontario Eyes NATO Jet Hub

Proposal Would Establish Domestic Fighter Production Line, Reshaping Canada’s Strategic Role Within the Alliance

OTTAWA — In a proposal that could fundamentally alter Canada’s position within NATO, Saab has urged the Canadian government to establish a Gripen fighter jet production line in Ontario — a facility large enough to build over 100 aircraft for Ukraine while also meeting domestic and allied requirements .

The Swedish defense manufacturer’s pitch comes as Ottawa reviews its planned purchase of 88 F-35 Lightning II fighters from Lockheed Martin, a review launched amid cost pressures, trade tensions with the United States, and questions over industrial return .

What makes this proposal different from previous offers is its scale. Saab is not merely suggesting final assembly in Canada. The company envisions a full manufacturing hub that would produce Gripen E/F fighters for export customers, with Ukraine identified as the primary potential buyer .

“We need to ramp up our fighter jet production capabilities to a level where it’s not only for Canada — we do see that the potential line will produce for export as well,” Mikael Franzén, Saab’s chief marketing officer for the Gripen, told reporters at the Singapore Airshow .

The Industrial Opportunity

Saab has been marketing the Gripen across Canada for years, calling it “The Made-in-Canada Fighter.” The company claims its proposal could generate approximately 12,600 Canadian jobs, up from earlier estimates of 10,000 .

The plan would establish production facilities in Ontario and Quebec, supported by a pan-Canadian supplier network. Crucially, Saab has proposed partnering with Bombardier on the GlobalEye airborne early warning aircraft, which uses Bombardier’s Global 6500 business jet as its base platform .

“The government is interested in all major projects that can not only protect Canada’s security and sovereignty, but also create jobs across the country,” Industry Minister Mélanie Joly told CBC News. “We certainly can’t control President Trump, but we can control our defense investments, who we award contracts to, and how we are ultimately able to create jobs in Canada” .

The Ukraine Connection

The timing of Saab’s intensified pitch is no accident. Sweden has already signed a letter of intent with Ukraine that could lead to an order of between 100 and 150 Gripen aircraft once the war ends .

If Canada were to establish a production line, it could serve both domestic needs and Ukrainian orders, effectively embedding Canada into a European-focused supply chain for tactical aviation while diversifying beyond traditional dependence on U.S.-dominated aerospace programs .

For Ukraine, the Gripen offers distinct advantages. The aircraft has relatively low operating costs and is easy to maintain. Swedish pilots train to operate it using roads and highways, making it well-suited for the austere conditions faced in the war-torn nation .

“These are great aircraft, strong aviation platforms capable of performing a wide range of missions,” Ukrainian President Volodymyr Zelenskyy said during the signing ceremony in Linköping. “Everyone can see what threats they help counter” .

A Mixed Fleet Strategy?

Saab executives have been careful not to frame their proposal as a direct replacement for the F-35. Instead, they are promoting a mixed fleet concept — some F-35s for high-end stealth missions, supplemented by Gripens for sovereignty patrols and Arctic operations .

“Many are speculating: will they replace the F-35 with the Gripen? I don’t think that is what they’re looking for,” Franzén said. “I think they’re looking for how their air force could be stronger in having a mixed fleet” .

Canada has already committed to purchasing 16 F-35s, with options for up to 72 additional aircraft. The first eight are scheduled for delivery to Luke Air Force Base in Arizona between 2026 and 2027 . But the government has left open the possibility of adjusting the final fleet composition as part of its ongoing review .

The Sovereignty Argument

For many Canadian defense analysts, the Gripen’s appeal extends beyond industrial benefits. Unlike the F-35, which operates under strict U.S. technology controls and a sustainment model that keeps significant authority in American hands, the Gripen offers full technology transfer and domestic control over software upgrades .

“The F-35 comes with a leash. The Gripen comes with a toolbox,” said Philippe Lagassé, a defense procurement expert at Carleton University, in a previous interview.

The Gripen is also designed for Arctic conditions — capable of operating in -40°C temperatures, taking off from short runways, and being serviced by small teams in austere locations . For Canada’s vast northern territories, these are not marginal advantages.

Political Headwinds

Nevertheless, the proposal faces significant obstacles. The F-35 significantly outscored the Gripen in Canada’s Future Fighter Capability Project evaluation, particularly in mission performance and growth potential . The Royal Canadian Air Force has made it clear that choosing the Gripen over the F-35 would be “a fundamental mistake” from an operational standpoint .

There are also questions about U.S. reaction. Washington has invested heavily in integrating the F-35 into NORAD and Five Eyes networks. A Canadian move toward the Gripen could be seen as a strategic rebuke, potentially complicating continental defense cooperation .

“We would expect F-35 subcontract work to be pulled from Canadian subcontractors,” warned Bryon Callan, an analyst at Capital Alpha Partners, noting U.S. leverage through the jet’s GE Aerospace engine .

What Happens Next

Saab is ramping up to achieve a production rate of 36 aircraft per year, though this estimate includes both existing and future lines . The company says the first aircraft for Canada could be produced in Sweden to get started quicker, with the rest manufactured domestically.

For Ontario, hosting such a facility would represent a major industrial victory. The province is already positioning itself as a defense innovation hub, with Ottawa and Gatineau launching a task force aimed at attracting NATO defense investment .

The final decision rests with Prime Minister Mark Carney’s government. It is a choice between short-term industrial incentives and long-term operational integration with the United States — between sovereignty and interoperability.

As one Canadian defense analyst put it: “This is not merely about replacing a fighter jet. It is about whether Canada is willing to trade comfort for control.”

The answer may come before the end of the year.

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