Volocopter Faces Chinese Takeover
Struggles with funding and competition prompt German air taxi company to seek investment from Chinese automaker Geely
Volocopter, the German air taxi company, is in talks with Chinese automaker Geely for a potential takeover. The deal, which could value Volocopter at up to $1 billion, would give Geely a majority stake in the company.
Volocopter has been struggling to raise funding and has faced increasing competition from other air taxi companies, including EHang and Lilium. The company has also been hit by the COVID-19 pandemic, which has caused a sharp decline in air travel.
Geely's interest in Volocopter is part of its broader strategy to invest in electric and autonomous vehicles. Geely already owns stakes in several other automotive companies, including Volvo and Polestar.
If the deal with Geely goes through, it would be a major coup for the Chinese automaker. Volocopter is one of the leading air taxi companies in the world and has developed a number of innovative technologies, including a fully electric vertical take-off and landing (VTOL) aircraft.
The deal would also give Geely a foothold in the rapidly growing air taxi market. The market is expected to be worth billions of dollars in the coming years as more and more people use air taxis to travel short distances.
Here are some of the key details of the potential deal between Volocopter and Geely:
- Geely would acquire a majority stake in Volocopter for up to $1 billion.
- The deal would give Geely control of Volocopter's technology and operations.
- Volocopter would continue to operate as an independent company under the Geely umbrella.
