Thursday, December 7, 2023
Business News

Stellantis and Archer will manufacture air taxis for $150 million

Stellantis, the automotive company that owns popular brands such as Jeep and Chrysler, has announced a partnership with US-based start-up Archer Aviation to mass produce the latter’s electric vertical takeoff and landing (eVTOL) aircraft, known as ‘Midnight’. In a deal worth $150 million, Stellantis will provide Archer with equity capital over the next two years, as well as increasing its existing stake in the company through stock purchases.

The partnership is a significant step forward for both companies, as it not only gives Archer the financial backing it needs to mass produce its innovative aircraft, but it also allows Stellantis to break into the burgeoning market for air taxis. The Midnight eVTOL is a sleek, electric aircraft that is designed to take off and land vertically, making it well-suited for urban environments. It has a range of 60 miles and a top speed of 150 mph, making it a viable option for short-distance travel.

The partnership between Stellantis and Archer is just the latest in a series of deals between automakers and aviation companies as the demand for electric air transportation grows. Companies such as Toyota and Boeing have also made investments in the space, and there are several other start-ups working on their own versions of electric air taxis.

The market for air taxis is expected to be worth billions of dollars in the coming years, as more and more people look for alternative ways to travel in urban areas. Electric air taxis offer a number of benefits over traditional modes of transportation, including reduced congestion on roads and lower emissions.

“We are excited to partner with Archer to bring their innovative technology to market,” said Stellantis CEO Carlos Tavares. “This partnership is a great opportunity for us to enter the air taxi market and offer our customers new, sustainable transportation options. We believe that electric air taxis will play a significant role in the future of urban transportation, and we are committed to being at the forefront of this exciting new industry.”

Archer CEO Brett Adcock echoed Tavares’s sentiment, saying that the partnership with Stellantis will allow the company to “accelerate our progress towards making electric air taxis a reality for the masses.”

The partnership between Stellantis and Archer is not the only major deal in the air taxi space recently. Earlier this year, Airbus announced a partnership with Joby Aviation to develop and produce electric air taxis, and Uber has also unveiled plans for its own air taxi service, known as Uber Elevate.

As the demand for electric air transportation continues to grow, it is likely that we will see more partnerships between automakers and aviation companies. The partnership between Stellantis and Archer is a promising step forward for the industry, and it will be interesting to see how their electric air taxis perform once they hit the market.