Stellantis and Archer Aviation Inc. have announced that they would considerably expand their cooperation by developing Midnight, Archer's flagship electric vertical take-off and landing (eVTOL) aircraft. Stellantis will assist Archer in constructing its planned production plant in Covington, Georgia. Production of the Midnight aircraft is scheduled to begin there in 2024. The Midnight eVTOL aircraft is built to be secure, eco-friendly, quiet, and capable of carrying four people and a pilot, with an expected payload of over 1,000 pounds (454 kg). The Midnight eVTOL has a range of 100 miles (161 km) and a recharge period of about 10 minutes, making it ideal for short, back-to-back travels of up to 20 miles (32 km).
Together, these companies will bring the innovative Midnight aircraft to market, making the most of their capabilities and skills in the rapidly growing urban air mobility sector. Archer contributes its global eVTOL, electric propulsion, and certification experts, while Stellantis provides cutting-edge manufacturing technologies, seasoned employees, and funding. Due to the combination, Archer can enhance its road to commercialization and save hundreds of millions of dollars on startup costs, allowing it to ramp up aircraft manufacturing more quickly in line with its commercialization ambitions.
Stellantis will provide up to $150 million in equity capital for use by Archer in 2023 and 2024 at Archer's discretion, contingent upon Archer's attainment of certain corporate milestones in 2023. Stellantis plans to further its strategic position by purchasing more shares of Archer on the open market soon. These steps and the other components of this relationship will make Stellantis the company with the most significant stake in Archer for the foreseeable future.
CEO of Stellantis Carlos Tavares remarked, "We have worked closely with Archer over the last two years, and I have always been impressed by their innovation and unwavering commitment to results. Stellantis constantly pushes the limits to give sustainable mobility freedom beyond the road and into the sky. We show how innovative we are by strengthening our cooperation with Archer as a strategic investor and with plans to increase our shareholding. Our support of Archer exemplifies Stellantis's commitment to being a global manufacturing leader."
"Stellantis' continuing acknowledgment of Archer's progress towards commercialization, and the current commitment of considerable resources to build the Midnight eVTOL aircraft with us, puts Archer ahead of the competition," explained Adam Goldstein, founder, and CEO of Archer. Together, our two companies are taking this significant action to seize the historic chance to revolutionize urban transportation for an entire generation.
Stellantis has been involved with Archer as an investor and strategic partner since 2020 when they first began working on several projects. Archer could use Stellantis' extensive experience in manufacturing, supply chain management, and product design to plan better, manufacture, and market its Midnight eVTOL aircraft.
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