The car manufacturer Stellantis is getting into the production of aircraft: On Wednesday at the large electronics fair CES in Las Vegas, it announced that it would produce the electric aircraft developed by the American company Archer, which should become flying taxis.
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Stellantis, known for its Peugeot, Citroën and Jeep car brands, will bring up to $150 million to Archer and its vertical takeoff and landing vehicle (eVTOL), which is expected to carry four passengers in addition to the pilot.
Dubbed Midnight, it looks like a small plane with multiple rotors on its wings and is said to make consecutive trips of around 30 kilometers with a charging time of around 10 minutes between each trip.
The two groups had partnered back in 2021, but to a more limited extent, Stellantis then needed to provide technical support and access to its supply chain.
This time, Stellantis is scheduled to mass-produce the aircraft as the exclusive contract manufacturer at Archer’s Covington, Georgia, facility in the eastern United States.
The exit from car production is “a question of freedom of mobility,” said Stellantis boss Carlos Tavares at a press conference.
Stellantis is committed to providing transportation that is “safe, clean and affordable,” and partnering with Archer is part of that, he said.
In addition to its mass manufacturing expertise and the $150 million that will be paid out in 2023 and 2024 subject to the achievement of certain targets, Stellantis also plans to increase its equity stake in Archer through share repurchases in the market.
The partnership allows Archer to accelerate production of the device, which is expected to begin in late 2024.
The American company will initially be able to build up to 650 devices per year before a potential expansion to up to 2,300 per year, Adam Goldstein, Archer co-founder and director, said during the update.
The partnership should also enable the American company to save “several hundred million dollars” when ramping up production thanks to Stellantis’ expertise.
“We have already made great strides in the design of the device and the certification process,” said Mr. Goldstein. “It is now a privilege to work with Stellantis on the production itself,” he added.
The company has already received a pre-order for 200 vehicles from American airline United Airlines in 2021, which confirmed their interest in August 2022 with a deposit of $10 million for 100 aircraft. These planes are expected to fly between New York and Newark Airport first, then to other cities like Los Angeles, Miami and San Francisco where United has a significant presence.
In France, Archer’s device would be ideal for trips between Roissy, Orly and Beauvais airports, Tavares said.