Chinese conglomerate busy insolvent volocopter
Zhejiang Wanfeng Auto Wheel, a Chinese
automotive and aerospace conglomerate, has acquired the failed German air taxi
startup Volocopter for just $11 million, following the company’s insolvency.
Volocopter, which had been a key partner in Saudi Arabia’s ambitious Neom
project, has faced financial collapse after struggling to stay afloat.
This acquisition comes after Volocopter declared
insolvency in December 2024, raising concerns about the future of Neom’s urban
air mobility plans, particularly in relation to its futuristic city development
on Saudi Arabia’s northwestern Red Sea coast.
Read More Neom
invests in Volocopter flying taxis
The $500 billion Neom initiative, a centerpiece
of Saudi Arabia’s Vision 2030 diversification program, had banked on
Volocopter’s electric vertical take-off and landing (eVTOL) aircraft to
establish a zero-emissions transport network. Neom had already placed an order
for 15 Volocopter aircraft and invested $175 million in the company in 2022,
designating it as the exclusive operator for air taxi routes across its planned
city developments, including The Line, Oxagon, and Trojena.
Wanfeng confirmed the deal in a filing with
the Shenzhen Stock Exchange in March, stating that it acquired Volocopter's
assets and intellectual property through its newly-established German
subsidiary, Heptus 591, which was set up at the beginning of this year.
As part of its restructuring, Volocopter
reportedly laid off its entire workforce of 500 employees. The acquisition’s
implications for Neom's ambitious transportation goals remain unclear.
Majid Mufti, CEO of the Neom Investment Fund,
also serves on Volocopter’s advisory board, further highlighting the close
relationship between the two entities.
Read More Neom
discloses green flying taxis and plans for four airports
In
addition to its backing from Neom, Volocopter had attracted investment from
major companies such as Mercedes-Benz, Honeywell, Intel, and Mitsui Sumitomo
Insurance Group. The company had conducted test flights in various global
locations, including Neom, Singapore, Paris, and Dubai. It was also working
toward securing European Union Aviation Safety Agency (EASA) certification for
its VoloCity aircraft, with plans to launch commercially this year.
Source: Arabian Gulf Business Insight
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