Stellantis Invests Additional $55 Million In Archer Following Recent Flight Test Milestone
Stellantis has invested an additional $55 million in Archer Aviation following a critical flight test milestone. This investment is part of their ongoing strategic funding partnership. Earlier in 2023, Stellantis made $39 million worth of open market purchases of Archer stock and invested $110 million under the same agreement. Archer is nearing the completion of a high-volume manufacturing facility in Covington, GA, expected to finalize later this year. This facility will support the production of up to 650 aircraft annually, leveraging Stellantis' manufacturing expertise. Archer aims to revolutionize urban travel with its electric vertical takeoff and landing (eVTOL) aircraft, reducing commute times significantly.
- Stellantis invested an additional $55 million in Archer.
- Total investment by Stellantis in 2023 reached $110 million.
- Archer's new manufacturing facility in GA will support the production of up to 650 aircraft annually.
- Archer's strategic partnership with Stellantis includes leveraging manufacturing and supply chain expertise.
- None.
Insights
Stellantis' additional
However, there are risks to consider. The eVTOL market is still nascent and while Archer has made significant strides, the commercial viability of such aircraft remains unproven. The heavy reliance on Stellantis’ expertise and financial support might also pose a risk if there are any strategic shifts or financial difficulties faced by Stellantis in the future.
Additionally, the completion of Archer’s manufacturing facility in Georgia is a critical milestone. Its potential to produce up to 650 aircraft annually could position Archer as a leader in the eVTOL space. Investors should watch for updates on this facility's progress and any operational challenges that might arise during its ramp-up phase.
The strategic investment by Stellantis not only underscores the potential of eVTOL technology but also points to a significant shift in urban mobility trends. eVTOLs like Archer's Midnight aircraft are poised to transform how people navigate congested urban environments, potentially reducing commute times significantly while being more environmentally sustainable.
From a market perspective, this collaboration between a traditional automaker and an aviation innovator could set a precedent, attracting further investments and partnerships within the industry. The noise, sustainability and cost-competitiveness of these vehicles with ground transportation could reshape public perception and adoption rates.
Furthermore, the facility in Georgia will be one of the largest in the aircraft industry by volume, indicating a robust infrastructure to meet future demand. However, adoption will depend on regulatory approvals, public acceptance and the cost-effectiveness of these flights compared to existing transportation options.
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Investment from Stellantis under the companies’ strategic funding agreement builds on the
$39 million $110 million -
Construction nears completion on Archer’s high-volume manufacturing facility in
Covington, GA , which is on track to be completed later this year
AMSTERDAM &
Image of Archer's Midnight electric air taxi flying during a recent flight test. (Photo: Business Wire)
This latest investment builds on Stellantis’ series of open market purchases of 8.3 million shares of Archer’s stock in March of this year that was previously announced. During 2023, Stellantis invested
Archer remains on track to complete construction of its high-volume manufacturing facility in
“Few things rival the excitement of seeing a dream take flight. I applaud the innovation, expertise and hard work of the engineering and manufacturing teams from Stellantis and Archer,” said Carlos Tavares, Stellantis CEO. “With this additional investment in Archer, we remain on course for a future where freedom of mobility extends beyond today’s roads.”
“The commitment by Stellantis to Archer has been unrivaled, from its foresight to provide the manufacturing expertise and capital needed to accelerate Archer’s business objectives, to the strategic vision and steadfast support from Stellantis CEO Carlos Tavares,” said Archer CEO, Adam Goldstein. “Together, we’re working to redefine urban transportation, opening new worlds of opportunity for citizens across the globe by providing more efficient access to people, places, and events across the regions they live in.”
Stellantis has been a strategic partner to Archer since 2020 through various collaboration initiatives, and as an investor since 2021. During this time, Archer has leveraged Stellantis’ deep manufacturing, supply chain, and design expertise in connection with Archer’s efforts to design, develop, and commercialize its eVTOL aircraft.
Archer’s goal is to transform urban travel, replacing 60–90 minute commutes by car with estimated 10–20 minute electric air taxi flights that are safe, sustainable, low noise, and cost-competitive with ground transportation. Archer’s Midnight is a piloted, four-passenger aircraft designed to perform rapid back-to-back flights with minimal charge time between flights.
About Stellantis
Stellantis N.V. (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP) is one of the world’s leading automakers aiming to provide clean, safe and affordable freedom of mobility to all. It’s best known for its unique portfolio of iconic and innovative brands including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, FIAT, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys. Stellantis is executing its Dare Forward 2030, a bold strategic plan that paves the way to achieve the ambitious target of becoming a carbon net zero mobility tech company by 2038, with single-digit percentage compensation of the remaining emissions, while creating added value for all stakeholders. For more information, visit www.stellantis.com.
About Archer
Archer is a leader in the electrification of aviation. We are designing and developing the key enabling technologies and aircraft that are necessary to power the next great transportation revolution. Our goal is for our proprietary technology to deliver unprecedented connectivity to the people and places across the most congested cities in the world. To learn more, visit www.archer.com.
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Archer Forward Looking Statements
This press release contains forward looking statements regarding Archer’s future business plans, including statements regarding its aircraft performance, the planned production capacity and timing of completion of Archer’s manufacturing facility, and the timing of Archer’s development, commercialization, and certification of its eVTOL aircraft. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors. The risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed in Archer’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, available at www.sec.gov. In addition, please note that any forward-looking statements contained herein are based on assumptions that Archer believes to be reasonable as of the date of this press release. Archer undertakes no obligation to update these statements as a result of new information or future events.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240702578997/en/
Stellantis Media Contacts
Fernão SILVEIRA +31 6 43 25 43 41 – fernao.silveira@stellantis.com
Shawn MORGAN +1 248 760 2621 – shawn.morgan@stellantis.com
Archer Media Contacts
The Brand Amp - Archer@TheBrandAmp.com
Source: Archer Aviation
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