Sweden’s Saab is considering Canada as a potential assembly site for its Gripen E fighter jets as it looks to expand production capacity amid rising international demand, including from Ukraine.
On October 22, 2025, Swedish Prime Minister Ulf Kristersson and Ukrainian President Volodymyr Zelenskyy signed a letter of intent in Linköping covering a potential sale of more than 100 Saab JAS 39 Gripen E fighters. Although no order has yet been finalized, Zelenskyy has outlined plans for a future combat fleet of approximately 250 aircraft, including F-16, Gripen, and Rafale fighters.
Designed for rapid turnaround and dispersed basing, the Gripen’s rugged design and low maintenance demands make it well-suited to Ukraine’s wartime operating conditions.
Vadym Voroshylov, a Ukrainian MiG-29 pilot known by the call sign “Karaya” and named a Hero of Ukraine in 2022, described the Gripen as “designed for Ukraine’s realities,” praising its resilience, quick rearming time, compatibility with Western weapons, and relatively low operating costs.
Expanding production capacity
Following the announcement, Saab CEO Micael Johansson told the Financial Times that the company is “evaluating ways to rapidly increase output,” noting that Ukraine’s potential order would double Saab’s current production needs and could lead to new assembly lines in Canada, Ukraine, or elsewhere in Europe.
Saab already assembles Gripen fighters in Sweden and Brazil, where Embraer manages local production. A Canadian production line would mark Saab’s first industrial foothold in North America.
Saab and Bombardier in talks
Bombardier has confirmed ongoing discussions with Saab regarding the localization of Gripen production in Canada as part of its expansion plans.
“Bombardier is open to providing local expertise if the Government of Canada decides to go this route,” Mark Masluch, the company’s Senior Director of Communications, told The Globe and Mail. A senior Canadian government source added that a joint venture between Saab and Bombardier is under consideration.
Potential assembly could take place at Bombardier’s Toronto Pearson or Dorval, Quebec facilities, or at a new site if production volumes justify it.
Saab and Bombardier already collaborate on the GlobalEye AEW&C aircraft, a platform based on Bombardier’s Global 6000/6500 business jet and equipped with Saab’s Erieye radar.
Strengthening Canada-Sweden industrial ties
The talks build on the Canada–Sweden strategic aerospace and defense partnership launched in August 2025, which aims to deepen cooperation in industrial innovation and Arctic security. During a visit to Sweden, Industry Minister Mélanie Joly said Canada was committed to working “with trusted allies to diversify supply chains and deliver the advanced technologies and expertise the world needs”.
Speaking again on the sidelines of the Canadian Aerospace Summit in Ottawa on October 29, 2025, Joly described Saab’s potential expansion as “good news” and confirmed she had met Micael Johansson earlier in the day.
“I’ve been actively working with Saab to see what can be done to develop more partnerships with Canada, including with the GlobalEye program, but we are also willing to consider how we can support Ukraine,” Joly said.
The minister added that Canada and Sweden share a common outlook on European security and Ukraine, and that their aerospace industries are natural partners.
“I therefore believe there is an excellent partnership between Canada and Sweden that we can strengthen,” Joly concluded.
Canada revisits its F-35 deal
Canada’s ongoing review of its order for 88 F-35A Lightning II from Lockheed Martin may open the door to Saab’s proposal. Ottawa delayed final confirmation of the F-35 contract amid concerns over cost escalation and limited industrial return.
Prime Minister Mark Carney launched the review earlier in 2025, citing the need to diversify defense suppliers amid trade tensions with the United States. Several Canadian officials have since suggested that Canada could adopt a mixed fleet, combining F-35s and Gripens to balance sovereignty, cost, and industrial benefits.
US Ambassador Pete Hoekstra has cautioned that keeping two types of fighter jets would be “extremely costly” for Canada. The Ottawa Citizen reported that the US administration warned of “serious consequences” if Canada decided to revise the agreement.
