Volocopter: air cab start-up faces possible sale to China

The Chinese car manufacturer Geely and the German company Volocopter GmbH are in advanced talks about a takeover. Such a deal could save the struggling air cab start-up based in Bruchsal in Kraichgau from imminent bankruptcy. This was reported by the US news agency Bloomberg, citing people familiar with the negotiations.

According to the report, Geely could acquire a majority stake in Volocopter and provide the company with fresh capital. According to the Bloomberg sources, the financing round would amount to around 95 million US dollars (around 90 million euros); in return, Geely would receive a majority stake of around 85 percent. This would mean that the Baden-based air cab company, which was valued at 1.5 billion euros two years ago, would only be valued at around 110 million US dollars (104 million euros).

Takeover possible soon

According to a person familiar with the matter, the Geely Group intends to complete the takeover next month. However, the deal could still fall through, it was said. A final decision on the terms and conditions has not yet been made. Volocopter has also held talks with other potentially interested parties. "Due to ongoing financing and contractual obligations, we will not disclose the names of investors, amounts raised or future projections," a Volocopter representative told Bloomberg in a letter. "As a privately funded company, we are strategically exploring multiple financing options available to us at the same time."

For Bloomberg, Volocopter's financial woes are a sign of "how difficult it is to make flying cars a reality in the US and Europe, where start-ups often collapse before they can sell a single vehicle". Competitor Lilium, for example, recently had to file for bankruptcy – and Volocopter is also short of cash and needs fresh capital. Both air cab pioneers still lack a license for passenger transport. Volocopter wanted to present its first commercial air cab, a two-seater called Volocity, at the Olympic Games in Paris this summer. Volocopter did receive approval to transport freight there, but then had to cancel the planned flights.

China as a lifeline

Fresh money for the company may now come from China. The government in Beijing has made the promotion of various activities and industries that deal with civilian manned and unmanned aircraft at low altitudes a priority.

If the takeover by Geely goes ahead, Volocopter is considering relocating the production of its future aircraft to China, according to Bloomberg sources. The current model is built in Germany. The Chinese Geely Group, which owns the Volvo and Polestar car brands, among others, has been a minority shareholder in Volocopter since 2019. Zhihao Xu, head of Geely Technology, has been a member of the advisory board of the Baden-based flying cab company since September of this year. At the same time, Volocopter announced that Dieter Zetsche, the former CEO of Daimler, would become the new Chairman of the Advisory Board. Current CEO Dirk Hoke, on the other hand, announced his departure in February 2025.

(akn)