Chinese billionaire Li Shufu’s Geely invests in German flying-car start-up Volocopter

Billionaire Li Shufu’s Zhejiang Geely Holding Group agreed to invest in flying-car developer Volocopter as the Chinese car giant diversifies into technologies that eventually could supplant the traditional gas guzzler.

Geely, which owns Volvo Cars and a stake in Daimler, led a round of investment that raised €50 million (US$55 million) to help the VoloCity air taxi launch commercially within the next three years, the companies said on Monday.

Geely and Bruchsal, Germany-based Volocopter agreed to form a joint venture planning to bring airborne cars to China.

Volocopter also is in talks to raise more funds by the end of the year, it said. Daimler has owned a stake since 2017.

Geely’s investment comes as China tries to wean drivers off internal-combustion engines in favour of new-energy vehicles, seeking ways to ease choking air pollution and a dependence on foreign oil supplies.

Li is extending his empire beyond cars by delving into areas from low-orbit satellites to microchips. His group announced in 2017 it would buy US-based Terrafugia, which is trying to bring a flying car to market in 2019.

Geely also signed an agreement in November with state-owned China Aerospace Science and Industry to build “supersonic trains” using home-grown technology.

“Geely is transitioning from being an automotive manufacturer to a mobility technology group,” Li said.

Variations on the flying car also are being developed in the US and Japan. Uber Technologies, Boeing, Airbus and a Toyota Motor-backed start-up are among the companies trying to bring airborne vehicles to market.

Japan’s government wants the country to become a leader in the technology, producing a national road map for its development and studying ways to define and advance regulations. Last month, a flying car made by NEC hovered off the ground for about a minute.