Chinese automotive and aerospace group Zhejiang Wanfeng Auto Wheel has acquired failed German air taxi developer Volocopter, a partner in Saudi Arabia’s Neom giga-project, for $11 million.
The sale follows Volocopter’s collapse into insolvency in December, raising questions over Neom’s urban air mobility ambitions in its futuristic city development on Saudi Arabia’s north-western Red Sea coast.
The $500 billion flagship Neom project in Saudi Arabia’s Vision 2030 diversification drive was relying on Volocopter’s electric vertical take-off and landing (eVTOL) aircraft to power a planned zero-emissions transport network.
Wanfeng disclosed the deal in a March filing to the Shenzhen Stock Exchange, saying it acquired Volocopter’s assets and intellectual property through its German subsidiary, Heptus 591, which it established at the start of this year.
Volocopter has laid off its entire 500-strong workforce, according to German media reports. It is unclear what the acquisition means for Neom’s plans.
Neom ordered 15 Volocopter aircraft and invested $175 million in the company in 2022, appointing it as sole operator of initial air taxi routes across its city developments, including the The Line, Oxagon and Trojena.
Majid Mufti, CEO of the Neom Investment Fund, holds a seat on Volocopter’s advisory board.
Volocopter’s investors have included Mercedes-Benz, Honeywell, Intel and Mitsui Sumitomo Insurance Group.
It has conducted test flights in Neom, Singapore, Paris and Dubai, and is seeking European Union Aviation Safety Agency certification for its VoloCity craft, which it aimed to launch commercially this year.
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