Geely, the Chinese automotive giant, is reportedly considering acquiring an 85% stake in the German air taxi startup Volocopter for approximately $95 million, according to Bloomberg. This potential deal highlights growing interest from Chinese companies in the electric aircraft sector, which is sometimes referred to as “flying cars.” The family office of Gerhard Sturm, founder of fan manufacturer EBM-Papst, is also believed to be involved in the discussions.
Geely’s interest in Volocopter is not entirely surprising, as the car manufacturer has been involved with the company since 2019, becoming one of its investors. Additionally, the two companies formed a joint venture in 2021 with the aim of introducing urban air mobility in China by 2026. This comes as other car manufacturers, including Stellantis and Xpeng, also explore investments in electric air taxis, with Volocopter aiming to compete in a rapidly developing and competitive market.
Despite its potential, Volocopter, like many electric vertical take-off and landing (eVTOL) developers, faces significant challenges in achieving market readiness. The company struggled to meet its original goal of offering commercial services during the 2024 Paris Olympics. However, Volocopter successfully conducted a demonstration flight, showcasing its 2X model. CEO Dirk Hoke has previously warned that Germany risks falling behind in air mobility, as China accelerates its investments in the sector.
The proposed acquisition signals the growing importance of air mobility within Geely’s broader strategy, aligning with its existing ties to Volocopter and broader efforts in the electric vehicle and air mobility sectors. While Volocopter has not yet commented on the takeover rumors, the involvement of high-profile figures like Dieter Zetsche, former Daimler CEO and now Chairman of Volocopter’s Advisory Board, underscores the strong automotive connections shaping the future of air taxis.