Stellantis, known for its automotive brands Opel, Peugeot, Citroën, Fiat or Jeep, will also bring up to $150 million to Archer and its vertical take-off and landing (eVTOL) device, designed to carry four passengers in addition to the pilot.
Called the Midnight, it looks like a small plane with several rotors on its wings and is intended to make consecutive trips of about 30 kilometers with a recharge time of about 10 minutes between trips.
The two groups had already entered into a partnership in 2021 but on a more limited scale, Stellantis then having to provide technical assistance and access to its supply chain.
This time around, Stellantis is expected to mass-produce the aircraft, as an exclusive contract manufacturer, at Archer’s facility in Covington, Georgia, in the eastern United States.
Venturing out of auto manufacturing is “a matter of freedom of mobility,” Stellantis boss Carlos Tavares said at a news conference.
Stellantis is committed to providing “safe, clean and convenient” means of transportation, and the partnership with Archer is part of that vision, he noted.
In addition to mass manufacturing expertise and $150 million to be disbursed in 2023 and 2024 conditional on certain milestones being met, Stellantis also plans to increase its stake in Archer’s equity by repurchasing shares on the market.
The partnership allows Archer to accelerate production of the device, which is expected to begin in late 2024.
The company should be able to build up to 650 aircraft a year initially before a possible extension to produce up to 2,300 a year, Archer co-founder and principal Adam Goldstein said during the update.
The partnership should also allow the American company to save “several hundred million dollars” during the ramp-up of production thanks to the expertise of Stellantis.
“We’ve already made a lot of progress in the device design and certification process,” Goldstein said. “It is now a privilege to work with Stellantis on the production itself,” she added.
The company has already received a pre-order for 200 vehicles from US airline United Airlines in 2021, which confirmed its interest in August 2022 by providing a $10 million deposit for 100 aircraft. These planes are expected to fly initially between New York and Newark Airport, then to other cities such as Los Angeles, Miami and San Francisco, where United has a significant presence.
In France, Archer’s device would be ideal for travel between Roissy, Orly and Beauvais airports, Tavares said.
This is not the first alliance between a major automaker and an aerospace player. Last November, Renault partnered with aircraft maker Airbus to develop a new generation of battery-electric and hybrid technology for cars and aircraft.