On 21 October 2011, Rona Ambrose, Minister of Public Works and Government Services, and Associate Minister of National Defence Julian Fantino jointly announced that the $1.064 billion Implementation Phase of the LAV III Upgrade Project (LAV-UP) had been awarded to General Dynamics Land Systems - Canada. The program will upgrade 550 LAV IIIs of Canada's fleet in four variants: the Infantry Section Carrier, Command Post, Observation Post Vehicle and Engineer variants. Each will undergo a comprehensive upgrade aimed at extending their lifecycle to 2035. The upgrades will be performed at facilities in London, Ontario, and Edmonton, Alberta, and will extend from 2012 to 2017.
These upgrades will allow for significant improvements in survivability, mobility and lethality. Survivability enhancements include switching to a Double-V Hull offering inherent and weight efficient protection from mine and IED threats as well as energy-attenuating seats at all crew locations. A more powerful 450hp engine is included as well as upgrades to the drivetrain and suspension. Turret sights will be upgraded to extend their range and gun control electronics are being improved to reduce crew workload. The fully upgraded vehicle weighs 55,000lbs (25,000kg), but testing has demonstrated that its mobility is comparable to or better than the original high-mobility 38,000lb APC vehicle that the upgrade is based on.