Terrafugia, which has been working on developing a flying car since 2006, has been acquired by the Zhejiang Geely Holding Group of China.
Under the terms of the agreement, Terrafugia will remain headquartered in the United States and will continue to focus on its mission of developing the Transition, a flying car.
Terrafugia aims to deliver its first flying car to the market in 2019, with the world’s first VTOL (vertical take-off and landing) flying car being made available by 2023, according to company officials.
Terrafugia will also benefit from the Group’s significant expertise and track record of innovation within the global auto industry.
The deal received approval from all relevant regulators, including the Committee on Foreign Investment in the United States (CIFIUS).
Company officials report that, in anticipation of this acquisition, Terrafugia’s team of engineers in the US has been tripled over the past quarter with Geely Holding’s support.
“Geely Holding is fully committed to further investing in the business, and creating additional jobs, following the completion of the acquisition,” company officials said.
“The team at Terrafugia have been at the forefront of believing in and realizing the vision for a flying car and creating the ultimate mobility solution,” Zhejiang Geely Holding Group Founder and Chairman Li Shufu said. “This is a tremendously exciting sector and we believe that Terrafugia is ideally positioned to change mobility as we currently understand it and herald the development of a new industry in doing so. Our investment in the company reflects our shared belief in their vision and we are committed to extending our full support to Terrafugia, leveraging the synergies provided by our international operations and track record of innovation, to make the flying car a reality.”
“After working in the helicopter industry for over 30 years, and the aviation industry in China for 17 years, Terrafugia presents a unique opportunity to be at the forefront of a fledgling but enormously exciting industry,” added Terrafugia’s newly appointed CEO Chris Jaran. “The support that Geely has pledged to make Terrafugia’s vision of a flying car a commercial reality is unprecedented, and I assume this role with full of confidence for the future, with our first priority being the expansion of the company’s R&D capabilities.”